Chello
Well-Known Member
I agree with BobbyM here. It may not be what seems logical but if we are truly wanting the economics of the situation EVERYTHING must be account for.
So most economic models are based around the Utility of the action. So here we would be measuring how much utility we gain from brewing beer, but to do that we must recognize all of our costs, also in terms of utility.
So our costs could be financial(equipment, ingredients) and it also must include forgone utility due to the decision you made to brew (opportunity costs). This forgone utility can include anything from lost wages from a 2nd job, mowing the grass, shredding some mountain bike trials, or even having sex!
So its better not to say time is money, but say time is utility.
So most economic models are based around the Utility of the action. So here we would be measuring how much utility we gain from brewing beer, but to do that we must recognize all of our costs, also in terms of utility.
So our costs could be financial(equipment, ingredients) and it also must include forgone utility due to the decision you made to brew (opportunity costs). This forgone utility can include anything from lost wages from a 2nd job, mowing the grass, shredding some mountain bike trials, or even having sex!
So its better not to say time is money, but say time is utility.