Fallacy of Composition: Entity vs. Nonentity

 

What is mathematically true can be false in economics.


3)                 Nonentity vs Entity vs Infinity

            We can and often do classify all matters in two greatest categories, that is, entity (1) and nonentity (0). We call it a “binary system,” which happens to be the computer language. Then on, we can divide the entity into as many sub-entities as we wish with each still existent. On the flipside, we can never create an entity however many nonentities we may amass.

             Particularly in mathematics, we sometimes refer to “infinity.” Come to think of it, as for the entity, infinity is on the other side of nonentity: we can never build up infinity with however many entities, large or small. Right, nonentity is also called “infinitesimal” in mathematics; we when exogenous to mathematics can never create anything out of infinitesimal.

             In sum, what is true in the world of entities is not necessarily true either in infinite or in infinitesimal. In other words, the three of them belong to different worlds.

             Message to the rest of us: Thou shalt not differentiate or integrate entities lightly, so as not to get transmitted to the other world. In the first place of Economics, the “marginal” unit is supposed to be small but shall always and everywhere be an entity. If in the fruit market, we never care about differentiated or integrated ones.


<Quick Quiz>

i)                Differentiate the “inverse demand function” for apples.  

p= a∙qad+ b.

ii)              Integrate the “inverse supply function” of oranges.

p= c∙qos+ d.

Answers: The apple gets nicely sliced till  the end and quietly fades away to RIP (M0). The orange gets beautifully squared (M∙U0) but surely is kicked out of the market by none other than the invisible hand.


4)                 Moment vs Period vs Eternity

             While we are in Here on earth, there is no such thing as a moment in time (T0) which is nonentity (0). Prenatal, or before Here, there was no such thing as a period of time (T1) which is an entity (1), We never know until post mortem whether there will be such a matter as entity or nonentity up There in the heavens. Nevertheless, the best guess of the rest of us is that There will be no time dimension (T0) much the same as in all places of Macroeconomics. 

         Remember that there in Cambridge what is true at the moment (T0) is also true in the short run (L-1)? Lo and behold, a nonentity (0) becomes an entity (1) in a different veil. Well, who knows the economy of Eternity (T0) may grow across the spatial line (L-1) rather than the temporal line? Oh yah, the tree grows from ground to sky (L1) even in Here!

             Message to the rest of us: Thou shalt not aggregate the three of them: Prenatal (0), Here (1) and Eternity (0). Each market, all the markets and the economy never stop (T0) but they change over the time (T-1) probably endlessly.


                                    Paul, Mary and R.I.P. Peter: "500 Miles"


From Somewhere else

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