It is said that maximizing profit or utility is the main basis of economics, and there is no business that does not have a profit-making philosophy behind it. However, in our time, this profitability has transformed from a simple economic calculation into a complex computation with numerous variables. Therefore, if we encounter computational errors in pricing or estimating the costs of a business or production, even the outwardly profitable and economic appearance of that business or activity will have a misleading essence. For example, if we do not know how much energy at what price, how much flour, water, and salt at what cost, along with the baker's time and the value of the bakery's capital, is spent to bake a loaf of bread, the pricing of bread will not be economic. This simple example expands in today's world to include other variables for calculating the actual profit and loss of businesses and decision-making. In our time, one cannot make economic decisions without calculating psychological, human, social, and environmental costs and without considering the direct or indirect, material and spiritual dimensions and consequences. Considering the price and value of water in economic businesses and decisions of this kind, especially at a time when the water crisis is more serious than ever, is one of those variables that ignoring it can have irreparable costs for successive generations. In this program from the series 'A, B, Economy', the water consumed for producing various agricultural products has been addressed, listen:
Water, How Much Per Kilo?
The article discusses the complexities of economic calculations in today's world, emphasizing the importance of considering various factors, including water costs, in business decisions. It highlights the potential long-term consequences of neglecting these factors, particularly in the context of a serious water crisis. This issue is crucial for sustainable economic practices in Iran.
👥 Key Players
📰 What Happened
The article discusses the complexities of economic calculations in Iran, particularly emphasizing the importance of accounting for water costs in business decisions amid a severe water crisis. It highlights the potential long-term consequences of neglecting these factors.
- The water crisis in Iran is becoming increasingly severe, affecting agricultural production.
- Economic decisions must now consider a wide range of variables, including environmental and social costs.
💡 Why It Matters
📚 Background
Iran is experiencing a severe water crisis due to climate change, mismanagement, and over-extraction of resources, which threatens its agricultural sector and overall economy.
🏷️ Entities Mentioned
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%