Great work in your work! I agree with a large portion of your response. As you mentioned,
For the exchange to follow through, both parties must expect to leave better off than prior to the exchange.”
This is a great summarizing piece outlining both chapters from this week’s material, as well as previous chapters regarding the makeup of capitalism. In my opinion, this system of government is primarily predicated around good faith. One party will provide a gift that satisfies another’s wants or desires. To do so, the individual must take the time to fully understand the recipient. The beneficiary takes notice of the sincerity behind their gift giving and is inspired to reciprocate this action. This prestigious cycle takes on an endless format and breeds competition amongst mutual parties.
On an individual level, we make exchanges each day based on the values we place on items. However, value is subjective, and price pointing to any item at a mutually beneficial cost is very challenging. This decision making process is outlined as an opportunity cost by Bylund. Entrepreneurs must understand their consumer base well enough to price point their merchandise at a level high enough that they will receive profits, while not losing out on their customer base to a varying degree. As you thoroughly outlined in your response, this connects back to the theme Bylund was conveying in chapter five. As personified by the title, the process of opportunity cost has many levels. Some are visible, some are not. Bylund uses multiple examples to translate this message, including the example of a young boy breaking his parent’s window. The family makes the decision to pay for the repair of the broken window. Because of this decision, they forfeit the opportunity to use those funds in any other beneficial way. This decision outlines the value the father has in fixing the house. What can be seen in this example is the father’s visible frustration with his child’s mistakes. What cannot be seen is the thought process he is undergoing as he measures the price it will take to fix these issues.
I struggled a bit more with this section of your response to understand your stance/opinion. During this chapter, the author demonstrates effective and ineffective regulations while providing examples of their appearances. However, you did a great job summarizing Bylund’s points and connecting it back to the examples he used.
RE: Module 8: Seen/Unseen/Taxation/Regulation