Saturday, February 14, 2009

The Principle of Increasing Opportunity Cost

also called "The Long-Hanging-Fruit Principle".

I was studying Economics during Gamelan practice last night and I came across this principle. Here is what it says: "In expanding the production of any good, first employ those resources with the lowest opportunity cost, and only afterward turn to resources with higher opportunity costs"

Basically the principle was saying that you should choose the easiest sources to get your hands on before switching to more difficult ones.

The book gives one analogy about a new replacement CEO who is assigned in a non-effective company. According to this principle, the CEO should first tackle the problems that are easiest to solve first and then tackle on the harder ones after. I think this makes a lot of sense though instead of tackling such miniscule problems I would tackle those of high importance which is the root of every others. But then again, I've never been a CEO so I should learn from those successful CEOs xD.
[The book states easy problems with high consequences of bringing the company to be better though].

Anyway, my point of writing this relates to the post I made before. Regarding the apple tree thingy. Such a coincidence that after I made that post I found this principle when reading my econs book. This princible of 'low-hanging-fruit' sort of broke the logical relation in the previous one.

Suppose the guys as the apple-pickers
And the girls as the apples

If we apply this principle, then logically the guys will pick those low-hanging apples (easy girls).
And anyway, the principle said that the fruit-pickers will only reach the top if he is planning to collect all the fruits.
So in conclusion.. the guys that will reach the top is a.. womanizer?

Oh man, that sounds super wrong, hahahaha

However, that makes sense, don't you think? How many top women fell for such guys? Because these guys have the gut to go after them. =P.

Yet, mankind is not a fixed subjects. There are a lot of irregularities regarding our species. Not only in our species, in everything that exists in this world, there are always outliers. Things that are different from the rest. So, there should still be guys somewhere out there who have enough guts yet not womanizers.

I really think that I learned to observe many humanity issues through what I've learned from Economics. Interesting, eh?

2 comments :

  1. Z said...

    girls and apples eh?
    hahaha
    so adam and eve

  2. E.S. said...

    lol
    i didn't see that relationship :p