Whereas the preceding researchers have regarded the Rich Choi Family in KyoungJoo as an enterprise from the point of view in business administration, I have interpreted the Rich Choi Family from a economic point of view.
The contents related with eco...
Whereas the preceding researchers have regarded the Rich Choi Family in KyoungJoo as an enterprise from the point of view in business administration, I have interpreted the Rich Choi Family from a economic point of view.
The contents related with economic activities of all the Rich Choi's family I have extracted and they have been grouped into genealogical table and then I have produced genealogical isoquants, short-run total-product curve, short-run average-product curve, short-run marginal-product curve, long-run total-cost curve, long-run average-cost curve appling to the theory of producer choice.
Economically explaining the case of the Rich Choi Family, The shape of long-run average-cost curve is the convex curve toward origin until economies of scale is accomplished ‘minimum efficient scale’ at first declining right and afterward stopping at the lowest point.
Concretely speaking, the principle of the least expense is faithfully stuck to by the family precept that Goods must be controlled by necessity until total product reach to 20,000 seom.
When the profit surpass 20,000 seom, by the family precept that Don't accumulate rises more than 10,000 seom , Do not accumalate your prosperity during a year of bad harvest , the Rich Choi Family had been willing to keep their minimum efficient scale by appling flexibly the principle of the least expense.
Having Applied flexibly the principle of the least expense, it had inspired tenants with productivity and it had been able to keep optimum scale of plant to maintain maximum profit in the long time.
The three family precept had been able to maintain maximum profit in the long time overcoming the profit of short duration by having controlled the scope of profit.
I have come to the conclusion that the Rich choi Family had been able to maintain maximum profit in the long time through having applied flexibly the principle of the least expense.
The case of the Rich Choi Family shows that the current economic education needs to modify and complement toward maximum profit in the long time and that the text books in use add contents related to flexible appling by overcoming something routine.
And I think that a manger have to keep optimum scale of plant and optimum rate of output to survive in the long time as the case of the Rich Choi Family.