BENEFIT per unit cost

Charles François (2004). BENEFIT per unit cost, International Encyclopedia of Systems and Cybernetics, 2(1): 280.

Collection	International Encyclopedia of Systems and Cybernetics
Year	2004
Vol. (num.)	2(1)
ID	◀ 280 ▶
Object type	Discipline oriented, Methodology or model

The relation between a system's input and the resources that it must spend in order to obtain them.

This relation must remain positive, i.e. it should yield a better than average return, at least as a general mean.

This is a very general relation, that can be observed from Biology and Animal Ecology to Business and Economics

In Economics for example, it is expressed through marginal utility.

It obviously governs behavior in any system in its relations with its environment.

When the costs of obtaining needed inputs cross a specific threshold , the system is losing its balance. If this situation is not corrected, the system could be on its way toward collapse of bankrupcy.

See also