MATHEMATICAL MODELLING OF SOCIO-ECONOMIC PROCESSES AND SYSTEMS

Newtonian mechanics inertial conception of microeconomical systems

  • 1 Univers ity “Pr. Assen Zlatarov”, Burgas Faculty of Real Sciences, Chair of Physics and Mathematics

Abstract

The study of the activities of microeconomic systems always remains a very important task of quantitative description of these systems. The proposal of new methods of study over time takes place in the emergence of new integrative scientific platforms such as econophysics which is a modern platform based on the description of economic phenomena by the application of classical and modern theories of physics. The microeconomic system of goods in general is characterized by the possession of some quantity of good s that is a potential for the revenues generating as the result of customer demands. The quantity of goods evolves over time as if it is a “trajectory” according to the theory of classical mechanics. This trajectory in economic terms is called the trend.
The system “moves” on this trajectory and the movement takes place under the action of the forces acting on the system. This study delimits the following names of the forces acting on the microeconomic system. The first type of the force acting from the customers is called the driving force Fm .For the stable efficient continuation of the system over time, it is necessary both the permanent insurance with goods from the distributors and the payments in the form of salaries and other various taxes, all being expenses that are generally categorized in assets and liabilities. And they will be called in economic terms with a general term friction forces Ffr. These friction forces stop the numerical increase of the revenues in general.
A special case belongs to the movement on a constant trend (case of uniform rectilinear movement). This case occurs when the driving force of customers is equal to all types of resistance force (all types of the payments in the form of various taxes and salaries). It should be noted that when all the free financial resources that come from the sale are all spent on new goods from distributors as well as other taxes and wages then it really seems that the system seems to be “in the rest state” (“does not move”) This is Newton’s first law, the respective speed and the acceleration is zero..
The mechanical conception of the description of the activity of microeconomic systems allows understanding deeply the mechanisms of the generation of bankruptcy as well as the special conditions necessary for income generation by the application of the physics language of Newtonian mechanics movement.

Keywords

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