The Diminishing Marginal Returns relationship implies that as more of some inputs is being sold, the value of that item decreases. For example, if there is only 1 iPod in the world, that iPod is sold at a very high price. However, when there are more iPods around, each iPod will cost lesser.
Similarly, the value of a secret is very high. If you hold a secret about yourself and nobody knows about it, its value is priceless because only you know it. When you tell one of your good friends the secret, they 'bought' the secret from you at a high price, but in actual fact you do not gain any money. A special kind of bond exists between your good friend and you - it is like investment. You invest in the secret using faith, trust and friendship.
Let's say more people know about the secret, either through the first person or through his/her good friend. The value of the secret diminishes greatly until there comes a point whereby it holds no value. Both parties' (the first person and the friend) investments fail. Faith, trust and friendship drop. Both will invest less into each other's secrets again. Another case of the Diminishing Marginal Returns relationship. All that is left is just memories of the secret itself which hold no value, and the trails - lack of faith, trust and friendship.
---
It is a wonderful day today. I can finally go back to school to take my economics promotional examination, after being cooped up at home for 4 days. I was stunned at the first question though, but as I wrote and wrote I realised that I had more points than the number of marks allocated for the question. Time was no problem though, because I have been training my writing speed. There was even this question on price discrimination. I am glad that it came out because I studied so hard for it. First degree price discrimination is when a buyer is charged the maximum price that he is able and willing to pay for each and every individual good that he purchases. Just like this post, there is some form of first degree (non-price) discrimination because only the smarter ones can understand this post. Second degree price discrimination is block pricing...
Oh yeah, I just remembered that I don't take economics. I woke up at 12 noon today anyway. Ah yawn...
Similarly, the value of a secret is very high. If you hold a secret about yourself and nobody knows about it, its value is priceless because only you know it. When you tell one of your good friends the secret, they 'bought' the secret from you at a high price, but in actual fact you do not gain any money. A special kind of bond exists between your good friend and you - it is like investment. You invest in the secret using faith, trust and friendship.
Let's say more people know about the secret, either through the first person or through his/her good friend. The value of the secret diminishes greatly until there comes a point whereby it holds no value. Both parties' (the first person and the friend) investments fail. Faith, trust and friendship drop. Both will invest less into each other's secrets again. Another case of the Diminishing Marginal Returns relationship. All that is left is just memories of the secret itself which hold no value, and the trails - lack of faith, trust and friendship.
---
It is a wonderful day today. I can finally go back to school to take my economics promotional examination, after being cooped up at home for 4 days. I was stunned at the first question though, but as I wrote and wrote I realised that I had more points than the number of marks allocated for the question. Time was no problem though, because I have been training my writing speed. There was even this question on price discrimination. I am glad that it came out because I studied so hard for it. First degree price discrimination is when a buyer is charged the maximum price that he is able and willing to pay for each and every individual good that he purchases. Just like this post, there is some form of first degree (non-price) discrimination because only the smarter ones can understand this post. Second degree price discrimination is block pricing...
Oh yeah, I just remembered that I don't take economics. I woke up at 12 noon today anyway. Ah yawn...
Labels: Secrets
0 Comments:
<< Home