What is the difference between total benefit and marginal …

  • Brief answer:

    Marginal benefit is the unit input caused change in output (in that process section).

    Total benefit is the total output caused by the total input (in that process section).

    Marginal equilibrium point is the marginal benefit zero moment in this process. It is the critical point that one more unit input will cause loss; it is the 0 that is in between the positive and the negative.

    More explanation:

    The marginal benefit concept is used in microeconomic competition to maximize profiting but there is another way to use this concept to understand the macroeconomic process and avoid the natural process driven microeconomic competition that lead to macroeconomic conditions deterioration caused economic equilibrium which is an economic heat death.

    When economic equilibrium occur regionally, this economy will try to use its power in its comparatively more powerful use value (products and services, capital) to get in real value from outside world to beak this equilibrium to continue this economic process; while its use value (mainly the accumulated use value — capital) and population (which is the real value and use value consumer but itself is also a form of use value) will try to spread out into the economically non- equilibrium area to exploit the potential differences in economic factors.

    But when the whole world falls into this economic equilibrium one day in the future, this cornered capital and population will have nowhere to go but sitting there waiting to be evaporated into nothing.

    Due to the present destructive effect on the material value (real value) is getting more and more malignant that had passed the nature recovering ability adjustment ability, these destruction are irreversible process that is unrecoverable, for instances: geothermal energy reduction is irreversible process that will short fall the life span of the ecosystem. Chemical pollution is irreversible process that causes irreversible damage to the ecosystem that deteriorating the evolution conditions that reduce evolution rate that will short fall the evolution level we need to reach the critical level to reach endless future, therefore negate the whole process into a meaningless thing — null work.

    Our economy is a natural tendency driven natural process. This natural process is an entropy growing process which depends on exploiting the potential differences in economic factors such as resources, labor cost, market, capital, science and technology to make profit. The higher the differences, the more profit you can get. This economy process will even down the potential differences in economic factors that reduce profit margin. The more evenly distributed the economic factors, the smaller the profit margin. This is the marginal benefit which is a relative benefit.

    When this potential differences in economic factors are totally evened down, the economic drive is pretty much gone — nonprofit activities. People just survive but not accumulating money in this economic activity. When the marginal benefit reduced to such that no longer contribute the growth of total benefit — this is the equilibrium point you cannot go further: beyond that point you will lose money.

    The stupidity of the natural process driven economy is that it is a self-consuming process — it digging its own grave: economy is a shrinking sum game because economic activities cannot create real value but just convert material value (real value ) into use value (products and services represented by money and credit, accumulated as capital) and consumes it. This is a irreversible process governed by the second law of thermodynamics. Use value does not have value but has market worth therefore has power in it, when it turned into the form of money, it is a universal exchange medium. But its worth depends on the conditions of the real value conditions of that moment. Along the economic process, the total real value will continuously reduce and the worth of the use value will continuously deteriorating (that has a bit delay effect in time). When the real value depleted, the use value will be evaporated into nothing and the power in it will be gone.

    So the final result of economic growth and the investment relay from rich countries to poor countries is not the expected all rich but all absolutely poor.

    A practical and serious man would not take that as a big cause to pursue, because he is greedier and more ambitious: he wants the endless future and ultimate freedom in the universe.

    Economy rise and fall in cycles in history but this time things are a bit different: before it is much more benign regional and shallow damage there and here nature can recover it; but this time it the world wide large scale material value damage in depth and lasted for long term that shortfall the material reserve for the system time span and conditions we need to be connected to higher process to get into future, that alone will be sure to kill all human in far advance — You don’t need the material value be totally depletion to extinct all human and you don’t need a catastrophic disaster to extinct human, just short fall the material value will do the job in a deadly sure way.

    Total benefit is an absolute benefit — it is the total benefit you can get from the economic activity you conduct. Tough that understanding of the total benefit is wrong: the real total benefit should be the ultimate benefit — the endless future for human species. Therefor we should use the total material value in a way that it can support human race go through the nature allowed next 1.2 billion years to get that benefit, but not exhaust it as soon as possible to enjoy the moment — that is childish thinking.

    This marginal benefit theory is used in micro economy to direct the profit making activities — this is gaming in process level; but in macro economy, in a long term and system gaming point of, this natural process lead to dead end — economic heat death, a total resources depletion and population saturation that make all human kind extinct. This is an unsustainable process. Natural process of our present economy is using the most efficient way to exhaust all resources and destroy the environment that is actually collective suicide in an efficient way. The rat race of making money and getting rich is short sighted and shallow. A modern human should not take that as a big cause to pursue but consciously seek rational solutions.

    What all human now doing is trying to win the process level gaming but in the meantime unknowing all will lose the system level gaming that will cause all out extinction. Even you are willing to continue the process level gaming (the natural process of free competition and natural selection) forever, this process itself will deplete all resources and end this game sooner than you expect it.

    The real total benefit is in the final goal of human kind — endless future of the human species. To achieve that the only way is adopting rational process in rational system.


    Refer to my Quora answers or article in my free eBook SEEKING ANSWERS 12th edition in the questions: “Are there natural laws that govern social science?” “What are the characteristics of truth?” “If we can measure success with one value, what will be that value?” “What is the real nature of value?” “What is your definition of real value, use value and wealth?” “What is the difference between real value and use value?” “Why the real value is limited in any local space and time?” “What is human real value and how can we use it efficiently?” “What is surplus value?” “Is wealth equals to money?” “I worked hard to create the value”, what is wrong with this statement?” “What is the physical foundation of economics?” “How come money doesn’t have value?” “What are some approaches to value theory?” “How do you determine value?” “Will people change in front of crisis?” “Can the technology exponential progress save human kind?” “Can a living thing survive in space?” “Can we explain the magician dynamo in scientific terms?” “What are some risk management principles?” “Is it true: “Rosling and Pinker present good data that show we may get out of this mess”?” “What can save the human future?” “What is your opinion on commercialized space travel?” “What is the future of humanity?” “How science and technology affect human future? — Talk about the relations between natural science and social science — case analysis: what will happen if controlled nuclear fusion energy production comes into reality?” “How come we do not control our own population as we do for all other species? Is this wise?” “What do we fundamentally depend on to survive: adaptation or manipulation?” “Given the 100% reliance of all living organisms upon nature, why is human civilization destroying nature?” “How can we reach future?” “What are the basic principles of economics?” “Why is the concept of self-interest important in economics?” “What are the basic laws of economics?” “What is the essence of economy?” “What makes the present world economy wrong?” “Can you compensate the resources consumption and environment destruction caused by economic activities with money?” “What are the methods you used to study economics?” “Can you explain economics in brief words? How can we learn economics in 10 minutes?” “If the economy is a shrinking sum game, why some people get rich in economic activities and what is the future trend?” : “What is wrong with economic efficiency and productivity?” “What are some issues we have to be aware of when applying game theory to real cases in economy?” “Is capital growth a zero sum game?” “What is the relation between the rate of the worth decrease of use value and the real value conditions?” “What is the optimal strategy if everybody knows the optimal strategy (in any field)?” “What are some interesting mathematic applications in natural science and social science?”

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