diff --git a/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md b/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md deleted file mode 100644 index ed5334b..0000000 --- a/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md +++ /dev/null @@ -1,128 +0,0 @@ -# CORPUS-0005 -## Profit Is Sale Price Minus Total Cost -### Status: Training Corpus Seed -### Layer: Layer_0--Primitive_Facts -### Purpose: Teach that profit is calculated after all costs are counted, not merely by comparing purchase and sale price -### Repository Path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md - ---- - -## 0. Principle - -Profit is what remains after total cost is subtracted from sale value. - -A trader does not profit because the sale price is higher than the purchase price. - -A trader profits only if the sale value exceeds every cost created by the venture. - -```text -profit = sale_value - total_cost -``` - ---- - -## 1. Roman-Visible Example - -A trader buys oil in Ostia for 10 asses. - -He sells it in Capua for 18 asses. - -At first glance, the gain appears to be 8 asses. - -But the venture also required: - -- 2 asses for porterage -- 3 asses for cart space -- 1 as for storage -- 1 as for handling at Capua - -Total cost: - -```text -10 + 2 + 3 + 1 + 1 = 17 asses -``` - -Actual profit: - -```text -18 - 17 = 1 as -``` - -The venture succeeded, but only barely. - ---- - -## 2. Minimal Profit Structure - -Profit requires at least: - -1. sale value -2. purchase price -3. movement cost -4. holding cost -5. transaction cost -6. loss adjustment -7. time and opportunity cost where relevant - -A sale can look profitable before the full cost is counted. - ---- - -## 3. Incorrect Modern Assumption - -Incorrect assumption: - -> Bought for 10, sold for 18, profit is 8. - -Correction: - -> Bought for 10, sold for 18, profit is unknown until all costs are counted. - ---- - -## 4. Simulation Use - -This principle supports: - -- venture outcome calculation -- player feedback -- price comparison -- route evaluation -- break-even analysis -- false-profit prevention -- training examples in Layer 1 - -The model should always distinguish: - -- gross spread -- total cost -- actual profit - ---- - -## 5. Canonical Test - -If the model sees: - -> Purchase price: 10 asses. Sale price: 18 asses. - -It must not immediately answer: - -> Profit: 8 asses. - -It must ask: - -- what was transport cost? -- what was storage cost? -- were dues paid? -- was any product lost? -- how long was capital tied up? -- was another better venture missed? - -Only after total cost is known can profit be calculated. - ---- - -## 6. Success Condition - -If the model stops treating the difference between purchase price and sale price as profit, and starts subtracting total cost from sale value, this file is functioning correctly.