on 26-Jan-2017 (Thu)

Profit maximization occurs when

• the revenue value of the output from the last unit of input employed equals the cost of employing that input unit

Aproach:

• the difference between total revenue (TR) and total costs (TC) is the greatest;

In this approach, a firm starts by forecasting unit sales, which becomes the basis for estimates of future revenue and production costs. By comparing predicted total revenue to predicted total costs for different output levels, the firm targets the quantity that yields the greatest profit.

Aproach:

• marginal revenue (MR) equals marginal cost (MC);

When using the marginal revenue–marginal cost approach, the firm compares the change in predicted total revenue (MR) with the change in predicted total costs (MC) by unit of output. If MR exceeds MC, total profit is increased by producing more units because each successive unit adds more to total revenue than it does to total costs. If MC is greater than MR, total profit is decreased when additional units are produced. The point of profit maximization occurs where MR equals MC.

Aproach:

• the revenue value of the output from the last unit of input employed equals the cost of employing that input unit

This method compares the estimated cost of each unit of input to that input’s contribution with projected total revenue.

If the increase in projected total revenue coming from the input unit exceeds its cost, it contributes to total profit.

If the increase in projected total revenue does not cover the input unit’s cost, total profit is diminished.

Profit maximization based on the employment of inputs occurs where the next input unit for each type of resource used no longer makes any contribution to total profit.

Images can be linked or not linked.

If the images are not linked, then it is harder to recall them in the right order. For example when you made a shopping list that you forgot home, then at store you probably won't be able to recall all the items you want to buy.

Linked images are somehow connected. For instance if the first two items of the list were oranges and tooth paste, then in order to link the images of orange and toothpaste you could imagine that you drill a hole in the orange and fill it with toothpaste.

Types of image links

-proposed three 3 basic ways to link images with each other:

1. Transforming one image into another
2. Interaction between two images
3. Chaining multiple images with a story (a.k.a the story method)

The images of the chain (Story Method) can be connected using interaction and/or transformation. Then the chain becomes what we like to call a story, be the story logical or not.

• „ Base object “ or just „ base “ – real object (or just image) that we already know. In linking techniques it is the first object in your link.
  Besides it being an "object", it may also be a person, or something general like room, wall, ground, etc. If it is an item from your Peg System, then we call it peg. In method of loci we call it locus (base has a position with respect to other objects).
  
  
• „ Data object “ or just „ dobe “– object that we want to memorize. It may be visual or nonvisual, e.g an abstract concept. If it is nonvisual then it is useful to first create a mnemonic image for the dobe. In MLS (and PLS) a random middle dobe of the chain is also base (you use it to recall the next dobe).
  
  
• Dobe is linked to base (an association made between them). Later you can use that base to recall the dobe.

The following two methods cover all the ways to link dobe to base :

1. Transformation method or just TM.
   Link: transforming base into dobe (+using similarities). It' s similar to previously known substitution method , but far more enhanced.
   
   
2. I nteraction method or just IM.
   Link: interaction between base and dobe (quite often used to link dobe to peg/locus, but usually used in MLS to link two adjacent dobes in the chain).

TM and IM are also the basic tools for these two link systems:

1. Mnemonic Link System or just MLS links dobes together into a story. (IM-based) MLS is the most often used linking technique. * MLS and IM form traditional linking techniques *
   
   
2. Pinned Link System (PLS) is a special and stronger case of MLS. It picks some additional bases and creates links between them and some dobes of the chain.

A peg system is a technique for memorizing lists. It works by pre-memorizing a list of words that are easy to associate with the numbers they represent (1 to 10, 1-100, 1-1000, etc.). Those objects form the "pegs" of the system.

To rapidly memorize a list of arbitrary objects, each one is associated with the mnemonic image for the appropriate peg. Generally, a Peg List only has to be memorized one time, and can then be used over and over every time a list of items needs to be memorized.

Many people have come across the peg list system via the books of Harry Lorayne.

Transforming – changing object's properties like shape, material, color, behaviour, sound, touch etc.
If all properties of an object are changed it is better to call it substitution (we substitute old object with new one, that's the old substitution method). Thus substitution is just a special case of transformation.

Hybrid - object that has some properties of base and some properties of dobe; it is the result of my algorithm

Surface layer (of an object) - Every object has a general shape (e.g. it is round). But it also has little shapes on the surface. E.g a hedgehog is pretty round. But it has these spikes on its surface. Its skin with all the stuff that's on it (spikes) form its surface layer. Surface layer has a color.
Note that a surface can be constructed of other objects (each spike can be thought as seperate object).
We use this fact for letting base be constructed of little dobes (e.g lamp bulbs instead of spikes and skin) or just from dobe's surface (bulb's glass covering the skin and spikes).

(mnemo) deduction – Process of recalling dobe from its base (when the link between base and dobe is already made and we try to recall the dobe when seeing the base). In case of MLS the deduction would be recalling dobe from another dobe.
I use often term deduction instead of recall because in lot of cases the link between base and dobe is somehow logical and thus dobe can be deduced from its base. In case of TM the logic lies in similarities between base and dobe.

Algorithm for linking base and dobe in TM:

1. Find the most suitable base object for dobe (the most similar to dobe) (OPTIONAL)
2. Place the dobe inside base (then it's easier to perform the next task)
3. Let the base take the shape of the dobe (by expanding and/or shrinking it OR by multiplying it)
   -Now the dobe’s outer layer is constructed from base’s material. It also has the same color as the base’s surface.
   
4. Strengthen the link (by creating a behaviour similarity and/or nonvisual similarities)

Transforming – changing object's properties like shape, material, color, behaviour, sound, touch etc.

​ If all properties of an object are changed it is better to call it substitution (we substitute old object with new one, that's the old substitution method). Thus substitution is just a special case of transformation.

Hybrid - object that has some properties of base and some properties of dobe; it is the result of my algorithm

Surface layer (of an object) - Every object has a general shape (e.g. it is round). But it also has little shapes on the surface. E.g a hedgehog is pretty round. But it has these spikes on its surface. Its skin with all the stuff that's on it (spikes) form its surface layer. Surface layer has a color.

Note that a surface can be constructed of other objects (each spike can be thought as seperate object).
We use this fact for letting base be constructed of little dobes (e.g lamp bulbs instead of spikes and skin) or just from dobe's surface (bulb's glass covering the skin and spikes).

(mnemo) deduction – Process of recalling dobe from its base (when the link between base and dobe is already made and we try to recall the dobe when seeing the base). In case of MLS the deduction would be recalling dobe from another dobe.

I use often term deduction instead of recall because in lot of cases the link between base and dobe is somehow logical and thus dobe can be deduced from its base. In case of TM the logic lies in similarities between base and dobe.

Instead of using coercion or outright treachery, the perfect courtier got his way through seduction, charm, deception, and subtle strategy, always planning several moves ahead.

Today we face a peculiarly similar paradox to that of the courtier: Everything must appear civilized, decent, democratic, and fair. But if we play by those rules too strictly, if we take them too literally, we are crushed by those around us who are not so foolish.

Niccolò Machiavelli wrote, “Any man who tries to be good all the time is bound to come to ruin among the great number who are not good.”

Napoleon advised: Place your iron hand inside a velvet glove.

If you can master the arts of indirection, learning to seduce, charm, deceive, and subtly outmaneuver your opponents, you will attain the heights of power.

If you can master the arts of indirection, you will be able to make people bend to your will without their realizing what you have done. And if they do not realize what you have done, they will neither resent nor resist you.

Another strategy of the supposed nonplayer is to demand equality in every area of life. Everyone must be treated alike, whatever their status and strength.

To some people the notion of consciously playing power games—no matter how indirect—seems evil, asocial, a relic of the past. They believe they can opt out of the game by behaving in ways that have nothing to do with power. You must beware of such people, for while they express such opinions outwardly, they are often among the most adept players at power.

Yet another way of avoiding the game would be perfect honesty and straightforwardness, since one of the main techniques of those who seek power is deceit and secrecy. But being perfectly honest will inevitably hurt and insult a great many people, some of whom will choose to injure you in return.

The only means to gain one’s ends with people are force and cunning. Love also, they say; but that is to wait for sunshine, and life needs every moment

the better you are at dealing with power, the better friend, lover, husband, wife, and person you become.

Learning the game of power requires a certain way of looking at the world, a shifting of perspective. It takes effort and years of practice, for much of the game may not come naturally. Certain basic skills are required, and once you master these skills you will be able to apply the laws of power more easily.

An emotional response to a situation is the single greatest barrier to power, a mistake that will cost you a lot more than any temporary satisfaction you might gain by expressing your feelings.

Emotions cloud reason, and if you cannot see the situation clearly, you cannot prepare for and respond to it with any degree of control.

If you are trying to destroy an enemy who has hurt you, far better to keep him off-guard by feigning friendliness than showing your anger.

Love and affection are potentially destructive, in that they blind you to the often self-serving interests of those whom you least suspect of playing a power game.

You cannot repress anger or love, or avoid feeling them, and you should not try. But you should be careful about how you express them, and most important, they should never influence your plans and strategies in any way.

Related to mastering your emotions is the ability to distance yourself from the present moment and think objectively about the past and future.

You must be able to look in both directions at once, the better to handle danger from wherever it comes. Such is the face you must create for yourself-one face looking continuously to the future and the other to the past.

I thought to myself with what means, with what deceptions, with how many varied arts, with what industry a man sharpens his wits to deceive another, and through these variations the world is made more beautiful.

For the future, the motto is, “No days unalert.” Nothing should catch you by surprise because you are constantly imagining problems before they arise.

Instead of spending your time dreaming of your plan’s happy ending, you must work on calculating every possible permutation and pitfall that might emerge in it.

The further you see, the more steps ahead you plan, the more powerful you become

The other face of Janus looks constantly to the past—though not to remember past hurts or bear grudges.

Half of the game is learning how to forget those events in the past that eat away at you and cloud your reason.

The real purpose of the backward-glancing eye is to educate yourself constantly—you look at the past to learn from those who came before you. (The many historical examples in this book will greatly help that process.)

There are no principles; there are only events.

There is no good and bad, there are only circumstances.

You begin by examining the mistakes you have made in the past, the ones that have most grievously held you back.

You analyze the mistakes in your past in terms of the 48 laws of power, and you extract from them a lesson and an oath: “I shall never repeat such a mistake; I shall never fall into such a trap again.”

If you can evaluate and observe your past self with the 48 laws, you can learn to break the patterns of the past—an immensely valuable skill.

Power requires the ability to play with appearances. To this end you must learn to wear many masks and keep a bag full of deceptive tricks.

Deception and masquerade should not be seen as ugly or immoral. All human interaction requires deception on many levels

Deception is a developed art of civilization and the most potent weapon in the game of power.

You cannot succeed at deception unless you take a somewhat distanced approach to yourself— unless you can be many different people, wearing the mask that the day and the moment require.

If deception is the most potent weapon in your arsenal, then patience in all things is your crucial shield.

Like mastering your emotions, patience is a skill—it does not come naturally.

nothing about power is natural; power is more godlike than anything in the natural world.

patience is the supreme virtue of the gods, who have nothing but time.

Impatience, on the other hand, only makes you look weak. It is a principal impediment to power.

Power is essentially amoral and one of the most important skills to acquire is the ability to see circumstances rather than good or evil

Power is a game—this cannot be repeated too often—and in games you do not judge your opponents by their intentions but by the effect of their actions.

It is only natural for people to cover up their actions with all kinds of justifications, always assuming that they have acted out of goodness. You must learn to inwardly laugh each time you hear this and never get caught up in gauging someone’s intentions and actions through a set of moral judgments that are really an excuse for the accumulation of power.

It is a game. Both of you behave as gentlemen. observing the rules of the game and taking nothing personally.

Half of your mastery of power comes from what you do not do, what you do not allow yourself to get dragged into.

Half of your mastery of power comes from what you do not do, what you do not allow yourself to get dragged into. For this skill you must learn to judge all things by what they cost you. As Nietzsche wrote, “The value of a thing sometimes lies not in what one attains with it, but in what one pays for it —what it costs us.”

Perhaps you will attain your goal, and a worthy goal at that, but at what price? Apply this standard to everything, including whether to collaborate with other people or come to their aid.

Never waste valuable time, or mental peace of mind, on the affairs of others—that is too high a price to pay.

Power is a social game. To learn and master it, you must develop the ability to study and understand people.

To be a master player you must also be a master psychologist. You must recognize motivations and see through the cloud of dust with which people surround their actions.

An understanding of people’s hidden motives is the single greatest piece of knowledge you can have in acquiring power. It opens up endless possibilities of deception, seduction, and manipulation.

People are of infinite complexity and you can spend a lifetime watching them without ever fully understanding them. So it is all the more important, then, to begin your education now.

Never discriminate as to whom you study and whom you trust.

Never trust anyone completely and study everyone, including friends and loved ones.

Finally, you must learn always to take the indirect route to power.

Disguise your cunning. Like a billiard ball that caroms several times before it hits its target, your moves must be planned and developed in the least obvious way.

By training yourself to be indirect, you can thrive in the modern court, appearing the paragon of decency while being the consummate manipulator.

The laws have a simple premise: Certain actions almost always increase one’s power (the observance of the law), while others decrease it and even ruin us (the transgression of the law).

The gods of power frown on the frivolous; they give ultimate satisfaction only to those who study and reflect, and punish those who skim the surfaces looking for a good time.

Any man who tries to be good all the time is bound to come to ruin among the great number who are not good. Hence a prince who wants to keep his authority must learn how not to be good, and use that knowledge, or refrain from using it, as necessity requires.