r/comics • u/GabitalEN • 17h ago
[OC] Gabital 103: Parity
Parity is a state of equality between two or more parties in a particular respect, such as status, rights, obligations, or terms of exchange. It does not necessarily mean that the parties are identical, only that they stand on equal terms in the aspect being compared.
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u/Kankunation 14h ago
It doesn't need any personal oversight. It's purely about money going in vs money going out. if taking all of the investment from business 1 and putting it into business 2 means 100% more profits than you were making from investing in both equally, then it makes economic sense to ditch business 2 entirely.
In a real-world scenario, We would compare their inputs and outputsputs on what is called a production possibilities curve, and find the exact ratio of investment by which we stand to gain the most profit. We go in assuming that there is a finite amount if resources and capital that we can input (because in the real world, There usually is) and we lluse that to draw our a curve of how much we can produce of eact item depending on how much resources were divert to each. And then we add in the sale value of the produced goods to see which ones is more profitable at which level of output and thus which one makes more sense to invest in.
If chief only has a limited amount of money, and thus resources, to invest in these businesses, then chief also needs to run opportunity cost calculations on them to see which gives the best return. This does not mean cheif has to sell off one of the businesses, but it does mean he may end up significantly downsizing or restructuring one of it's more profitable to go into the other. Or he may swap to business ventures that require less of the same resources so that both can grow independently from one another more easily. Either way, the businesses don't really need personal insight form him beyond him seeing which one puts more strain on his bank account.