diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0002-one-as-margin-and-break-even.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0002-one-as-margin-and-break-even.md deleted file mode 100644 index ae7092a..0000000 --- a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0002-one-as-margin-and-break-even.md +++ /dev/null @@ -1,169 +0,0 @@ -# CORPUS-0002 -## One-As Margin And Break-Even -### Status: Training Corpus Seed -### Layer: Layer_1--Worked_Examples -### Purpose: Teach that a tiny sale margin can disappear once small costs, delay, or loss are counted -### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0002-one-as-margin-and-break-even.md - ---- - -## 0. Scenario - -A trader buys a small good in Ostia for 3 asses. - -He expects to sell it in Capua for 4 asses. - -At first glance, the venture appears profitable. - -The expected spread is only 1 as. - -A one-as margin is fragile. -Almost any additional cost can erase it. - ---- - -## 1. Known Facts - -| Fact | Value | -|---|---:| -| Origin | Ostia | -| Destination | Capua | -| Purchase price | 3 asses | -| Expected sale price | 4 asses | -| Gross spread | 1 as | - ---- - -## 2. First Incorrect Calculation - -A weak model may calculate: - -```text -4 asses - 3 asses = 1 as profit -``` - -This is incomplete. - -The calculation ignores every cost required to move, hold, protect, or sell the good. - ---- - -## 3. Break-Even Point - -The trader breaks even only if total cost is 4 asses or less. - -```text -sale value = 4 asses -break-even total cost = 4 asses -``` - -Since the purchase price is already 3 asses, the trader can spend only 1 additional as before profit disappears. - -```text -maximum additional cost before loss = 1 as -``` - ---- - -## 4. Cost Variants - -### Variant A — No Added Cost - -```text -purchase price = 3 asses -sale value = 4 asses -profit = 1 as -``` - -The venture succeeds. - -### Variant B — One Additional As - -```text -purchase price = 3 asses -handling = 1 as -total cost = 4 asses -sale value = 4 asses -profit = 0 -``` - -The venture breaks even. - -### Variant C — Two Additional Asses - -```text -purchase price = 3 asses -handling + delay = 2 asses -total cost = 5 asses -sale value = 4 asses -loss = 1 as -``` - -The venture fails. - ---- - -## 5. Why Small Margins Matter - -A small margin is not useless. - -It may still be acceptable if: - -- the trader is already sending a cart -- the good fills unused space -- the sale builds trust -- the buyer may become a repeat contact -- the good is part of a larger bundle -- the trader has no better use for the coin - -But a small margin is dangerous if: - -- transport must be paid separately -- storage is uncertain -- delay is likely -- the destination price is stale -- the buyer may refuse -- rivals may arrive first - ---- - -## 6. Correct Model Behavior - -The model should reason: - -- a one-as spread is not automatically profit -- break-even depends on total cost -- tiny margins are fragile -- low-value goods may still matter when bundled -- context determines whether small gain is worth risk - ---- - -## 7. Incorrect Model Behavior - -The model should not: - -- treat every positive spread as safe profit -- ignore small costs because they look minor -- assume one-as profit is always worth pursuing -- assume tiny trades are meaningless -- ignore bundling, repeat contact, or unused capacity - ---- - -## 8. Layer-0 Concepts Used - -This example uses: - -- `CORPUS-0002-goods-have-local-prices` -- `CORPUS-0003-money-has-purchasing-power` -- `CORPUS-0004-cost-includes-more-than-purchase-price` -- `CORPUS-0005-profit-is-sale-minus-total-cost` -- `CORPUS-0006-delay-is-economic-cost` -- `CORPUS-0012-every-venture-risks-loss` - ---- - -## 9. Success Condition - -If the model sees a one-as spread and immediately asks whether total cost leaves any margin, this file is functioning correctly.