Rejection Cost. From the perspective that my profit is someone else’s loss, and someone else’s profit is my loss, the fact that I have to reject an opportunity to make money for my circumstances is a loss for me and an act of giving someone else a profit. In other words, my added value is not determined solely by productivity but also by the marginal utility generated by the law of supply and demand. Therefore, my labor price should reflect the value that I have given up—the profit I could have gained. If the rejection cost is not included in my profit, I will be at a loss to that extent. Failing to account for rejection costs in production expenses is not wise, but foolish, because it risks my survival. There is no absolute value in this world. All economic values are relative. - Joseph’s “just my thoughts”
There are two types of businesses in this world when approached through the value of time and divided by the kinds of business: a business that requires discounting future value and a business that needs a surcharge. The bundle discount is a “future value discount business,” while the loan business is a “future value premium business.” Currently, it is unnecessary, but a bundle of sales is a business that offers customers incentives called “discounts” when they buy what they want in advance. The principal is not returned now in the loan business but must be returned in the future, providing the present incentive as a “delay repayment” in advance. Future discounts and surcharges can exist simultaneously in a business or a product; some enterprises will be ruined by mixing them if they change positions. - Joseph’s “just my thoughts”