Euler’s Constant and relating the same with the pitfalls of over specialization

Last Updated on September 10, 2020 by admin

When it comes to calculating amount earned on principal, the return stabilizes soon to the Euler’s Constant on the path to compounded yearly, half yearly, monthly… every second, continuously. As evident from the below table, amount earned on principal of Rs 100 with interest rate 100% when compounded yearly Rs 200, compounded half-yearly Rs 225, compounded quarterly Rs 244, compounded monthly Rs 261.3, compounded weekly Rs 269.30, compounded per day Rs 271.46, compounded per hour Rs 271.813, compounded per minute Rs 271.828, compounded per second Rs 271.828.

There  might be business processes where if additional efforts are put, the rise in returns is so meager that there is no practical benefit in increasing the effort. Analogies could be trying to manufacture for mass consumer market truck tires that will last more than 1000 years or cellphones that will remain unaffected after falling 5000 ft. with outcomes equivalent to moving towards a system of amount calculated compounded per month to per day or still per minute to per second.

The correction can be by shifting into newer, diverse operations or deploying resource into processes with increasing returns to scale.