Azerbaijan, Baku
   Время чтения 58

Keywords: money induction, cost induction, profit induction, calculation circles, commodity driving force.

Abstract

The author of this article continues to present the findings of his investigation into the potential for developing a novel economic theory based on a physical theory of economics.
The author presents the findings of a study comparing electrodynamics with commodities dynamics in this part.
By comparing the market field and the economy as a whole to physics concepts like a magnetic field, electromagnetic interaction, electromagnetic induction, and others regularities and mechanisms of these fields are revealed. The new economic theory includes new ideas and terminologies. It is demonstrated that economic and electromagnetic processes are generally the same.

Introduction:

The four sorts of interactions that physical things can have with one another are gravitational, electromagnetic, strong, and weak. These interactions are distinguished by their intensity and appear at various spatial scales. The author examines the relationships between commodities and money from a perspective of physical science.

They are categorized by the author as the fifth category of interactions, and she believes that all physical phenomena depend on this sort of interaction.

According to the principle of “demand” (need) and “supply”, which governs the balance of all forms of energies and their movements as the foundation of physical interactions, the author’s claim is founded on this fact.

Given that both commodity-money and electromagnetic interactions appear in daily life, the author of the article examines commodity-money interactions from the perspective of the theory of electromagnetic phenomena.

As a result, the basis for research is the search for universal principles guiding the movement of energies in these interactions and the investigation of the identity of force characteristics. The primary goal of this research is to reveal the essence, which the term’s creator refers to as “economic energy”.

The work of the forces of this energy on the market field to replace real known types of energies into the real energy of a utility charge isrevealed, its universality in the assessment of these energies is described, and the author shows that this energy has all the attributes known in physics, the concepts of “energy”.

The basis of force interactions in the creation and circulation of commodities on the market is demonstrated to be economic energy.

Part 1: Commodity-money induction of the supply field.

In this part of the study, the author contrasts a magnetic field and electromagnetic induction with market fields and the processes that occur in them (economy).

The author referred to basic commodity chains in the first phase of the research that was published as the chains in which consumer services procedures, one-time trading operations, and handcraft production are carried out.

Small producers, taxi drivers, hairdressers, and other labourers who provide goods and services are examples of active elements in simple commodity chains. Passive elements are lone consumers of the goods and services provided by active elements. [1]

The author referred to firms involved in regularly repeating cycles of production and sale of commodities to a large number of buyers as chains of variable commodity.

The issues of the emergence and activities in the commodity-money field of any product, when there is a demand for this product and its supply, were discussed in the earlier published Section 1 of the research. This section used general physical methodologies. The author referred to the form of matter as the commodity-money field of any commodity through which commodity-money interactions between positive charges for the usefulness of commodities and negative charges for purchasers are carried out. [1]

The joint action of the two market fields that make up the commoditymoney field—the fields of supply and demand—is involved. Supply field is created by demand field.
Demand for any product implies the availability of buyers’ money.

A market field of demand or a monetary field of demand is created by the amount (quantity, volume) of purchasers’ money that will be spent on the purchase of a batch of products.

As you can see, the author used the word money to further describe and highlight the intensity of the phrase “market field of demand”. It should be emphasized that this field is a potential field prior to the emergence of a commodities current.

The market’s supply space indicates the producer’s access to capital. The author will refer to the manufacturer of the commodity for ease of presentation.

Calculated for the production and sale of a batch of goods, the amount (number volume) of the manufacturer’s funds is an economic force that generates a market supply field, which is essentially a commodity-money supply field.

This field includes two interrelated parts — monetary and commodity fields.

It should be highlighted that this field is potential before to the emergence of a commodity current, or prior to the beginning of products production. As a result, the supply and demand monetary fields are components of the commodity-money field in the market for any good.

The processes taking place in the aforementioned money fields are compared to those occurring in magnetic fields (physics). The stationary money fields that give birth to a straightforward commodity current were described by the author. Money fields are changeable (not stationary) fields if nothing else. It is clear that the alternating current’s field of action is the variable field.

The author offers “monetary induction,” a novel idea in economics, in connection with the aforementioned. In the broad sense, the author defined monetary induction as the use of financial resources:

  • Manufacturer to make and sell goods.
  • Buyers to buy this item.

The money resources of the producer, or the money field ofsupply, induce a commodity field when production begins. This field is the area in which actual forces and work are put to use rather than a potential one. This field induces a commodity current, which the author refers to as commoditymoney induction.

The manufacturing, transportation, and sale of items along a closed commodity chain do not involve zero labour in this field. This activity takes place in a closed commodity-carrying circuit in a fluctuating financial environment as an induced commodity driving force.

A source of electrical energy, a capacitor, and an inductor are all components of an electrical (oscillatory) circuit in physics. [4]

The author refers to a commodity chain that includes a point of manufacture (business), a wholesale warehouse, and a point of sale of commodities as the commodity sales place (economy).

What is a legitimate query, given the variety in the financial sector?

The full closed commodity chain functions as a commodity circle where the money-goods-money formula is used to carry out a regularly recurring market activity. This is the cause of the financial sector’s volatility. After investing in the creation and sale of items, the manufacturer receives a return on his investment, which is then used to fund new production.

As a result, the scheme’s cycle of cash flow is regularly repeated, allowing for the determination of the monetary field’s variability.

With the start of production, or the manufacture of products, the potential energy of the money field of supply steadily diminishes and transforms into an actual force (referred to as a “outside force” in the context of electricity), which performs actual work in the production of each good.[16]

Thus, the producer’s money’s potential economic energy decreases and transforms into kinetic energy in the form of costs (R), or the producer’s money’s resources’ costs become a product with a positive charge of utility and the corresponding real (biological, material, or spiritual) energy as they are manufactured.

This whole process takes place in the commodity field, on which a product with a positive charge of utility is born.

The author separately explores the monetary and commodity field of supply.

The producer, who has received information about the demand for a certain product, first has the energy of his entrepreneurial abilities.

He creates what is known as an economic costing and determines that he can turn a profit by producing and selling these goods.

The author imagines that the manufacturer, on the basis of this cost estimate, makes two other circular cost estimates for the same product.

The first circular costing, which the author called the monetary costing of costs, is a series of concentric circles outlined from one centre.

For the centre of the circle, the author takes the point (the current source is the enterprise), from which the entire process of production, movement and sale of goods begins. The circle point means Δq= 0.

The radius of each circle is equal to the sum of the radius of the previous circle and the distance between the previous and following circle.

The radius of the second circle will be equal to the sum of the radius r1 of the first circle and the distance а2 between the first and second circles, for instance, if the radius of the first circle from the center implies and is equal to the cost of starting costs- а1. If а2– is the expense for the costs of the next stage, then the radius r2= r1 +а2 and thus all circles of expenses for the costs of the goods are outlined.

Naturally, the diameter of each circle denotes the degree of investment readiness of the charge in the product.

At any point in the manufacturing and sale of commodities, the economic energy of costs is determined by the size of each ring between concentric circles.

Radius rR= r1 +а2+а3 +….аn, which represents the last circle of costs equals the total of all expenses related to the manufacture, distribution, and sale of commodities.

It is evident that both the expenditure and the impact of the producer’s money are determined by the areas of the rings between the concentric circles.

According to the author, all concentric circles of the money field ofsupply are also circles of the money field’s force lines.

These lines of force are situated in a vertical plane that is perpendicular to the direction of the commodity current. From the place of production to the points of purchase and sale, this plane of force lines travels with the utility charge it creates in the commodity, inducing a commodity current.

The monetary field of the supply of commodity current is a monetary field of force because the produced charges in the commodity are moving over one another in concentric circles. A line of commodity current runs through the centre of each of these rings.

The force lines of the money field constantly follow the current flow of the commodity in the same direction as it moves along the conductor. Thegimlet rule can be used to calculate the directions of the money lines of force within a circle. [16]

The rotation of the gimlet’s handle will reveal the direction of the money field lines encircling the conductor if the gimlet’s forward motion and the direction of the current in the commodities conductor are combined. The force of monetary induction is applied and starts to work on the current line at a specific position of the power circle, which establishes the start of the actions of the subsequent stage BR.

Direction of the money induction vector BR coincides with the direction of rotation of the gimlet handle.

The tangents to these lines, which correspond with the direction of the money induction vector at each point, are what the author referred to as the force lines of the money field.

It should be noted that the force of monetary induction at the time of purchase and sale will be the sum of scalar values of monetary inductions at all stages of production and movement of goods.

The author calls the vector of the force of monetary induction BR — force characteristic of the money field.

The commodity current consists of several stages of actions on the commodity line, namely the stages: the manufacture of goods, their transportation, wholesale warehousing, and point of sale.

Each circle of the monetary supply field corresponds to a certain stage in the product line.

The power circle of each stage (circle) has its own monetary force induction, for example: Ва1 – product manufacturing induction, Ва2 – transportation induction etc.

Obviously, the general induction BR, is the sum of all inductions of each stage of the product line.

BR= Ва1 + Ва2 + ….Ваn

Each circle is eliminated with its own induction force as money is spent on the commodities current line. This indicates that this force hasfinished its task, and at the start of the following stage, the circle from the previous stage descends with its line of force and induction force.

It is obvious that these forces of induction create a monetary moment FR induction force, determining the cost of the manufacturer’s cash costs, at each stage of the product line.

The moment of induction forces are concentrated along the line of the investing money’s cash current, and it should go without saying that this line determines the direction of the commodities current.

The sum of the expenses for each stage, as determined by the moment of forces, will represent the overall cost of costs.

FR = Fа1+Fа2+….Fаn

Along the whole length of the commodity current at each link in the chain, every detail of the commodity’s manufacture, transportation, and sale is understood. One of its fundamental characteristics is the perception of the money field in the vicinity of the commodity conductor, which is made possible by knowledge of the money field. One of the following sections of the author’s research will address this.

In the process of commodity current, the moment of forces FR , as funds are spent, is converted into real cost force ΔR at each stage along the commodity current line.

The monetary moment of induction forces is determined by the formula:

FR=BR∙Δq∙v=BR∙Δq∙1piece. /Δt
FR ∙Δt=BR∙Δq∙1piece. =BR∙Q; BR=FR/(Δq∙v)

Where: FR∙Δt -force or energy impulse that raises the price of a single good.

Δq∙1piece. =Q-commodity, to the carrier 1piece, with a charge of utility Δq.

The economic energy of monetary resources, which the force FR expends at a rate of v on the expenses of producing one utility charge Δq in the product and all other charges for this product over the whole length of the commodity chain, is what is meant by monetary induction, as shown above (transportation, storage, point of sale).

As monetary resources are spent, the moment of forces FR turns into force ΔR — the force of direct creation of a utility charge and its carrier with real energy (biological, material and spiritual) contained in the product.

Force ΔR, as if gradually, “repays” the force FR, transferring the energy of the money current into the creation of a charge of utility with the real energy of the charge in the carrier, that is, a product is created.

Force ΔR, ultimately, is the sum of all costs per charge in a product throughout the entire product chain.

On the unseen and imperceptible energy field of the producer’s entrepreneurial skills and the money field, which move together? When goods are bought and sold, they take on a physical shape and a monetary value.

This field defines the profit induction force vector Br. This force is on the same force lines of the money field.

It is directed so that it works in tandem with the cost induction force vector at each stage of the streamline.

It should be observed that even while the induction forces of expenses and profits have the same direction and begin acting from the same point on the circle, their scalar values are different.

The gimlet rule also determines the direction of the lines of force of the profit around the conductor with a commercial current. [16]

The direction of the profit lines of force around the conductor will be indicated by the rotation of the gimlet’s handle if the translational movement of the gimlet and the direction of the current in the commodities conductor are coupled. Direction of the profit induction force vector Br coincides with the direction of rotation of the gimlet handle.

Profit induction force vector Br -determines the moment Fr of the profit induction force, which is directed along the commodity current line.

Profit induction force vector Br has one component Br⟂ which is perpendicular to it. The author called it the normal vector to the area of the circle.

This normal does not do work, but has the function of changing the direction of the commodity current.

For instance, a factory might produce and sell goods to customers in a certain market while having a limited output volume. The manufacturer changes the direction of the commodity current towards the new market when there is a demand for the same product in a market in a different city or country where the profit is higher; in other words, the vector of normal induction of profit changes the direction of the current towards greater profit.

The manufacturer is constantly seeking for ways to boost profits at each stage, such as using less expensive raw materials and materials, robotics, a less expensive mode of transportation, etc., even throughout the design and production phases. [7]

The moment of profit induction force is determined by the formula:

Fr=Br∙Δq∙v=Br∙Δq∙1piece./Δt
Fr∙Δt=Br∙Δq∙1piece.=Br∙Q ;Br=Fr/Δq∙v

Where: Fr∙ Δt — an impulse of force or energy that induces profit on one commodity.

Δq∙1piece. =Q — a product, that is, a carrier (1 piece) with a utility charge embedded in it Δq .

From the foregoing, it follows that the force of profit induction is expressed by the energy of entrepreneurial abilities, which, by themoment Fr of the force of induction of profit, is spent at a rate v on creating profit Δr on one charge of utility Δq in the product, as it moves along the line of the chain.

As the energy of the entrepreneurial abilities of the manufacturer is consumed, the moment Fr of the profit induction force turnsinto the force Δr — the profit force of the commodity current, which ensures the movement of the charge without taking into account the forces of costs.

As a result, the producer’s entrepreneurial skills and the money field’s combined induction force will be:

B1 =BR + Br

Where: B1 — total inductive force that induces a commodity current.

BR — the producer’s financial resources’ power of monetary induction and deciding how to spend these resources on expenses.

Br — the force of induction of entrepreneurial abilities of the manufacturer (profit induction), which determines profit.

The force of total induction B1 creates a generalized moment F1 of the forces of induction, which for one charge will be:

F1=FR+Fr=Δq∙v∙(BR+Br)=Δq∙v∙B1
B1 =F1/(Δq∙v)

The generalized moment of force is equal to the total of the supply field’s profit and monetary induction moments of forces.
The entire induction eventually reaches the capacity of the economic energy that the commodity contains at the time of the act of buying and selling:

B1 =1/C=φ1/Q=F1∙1piece/(Δq∙1piece.)

Where: φ1 — cost of selling goods.

1/C— economic energy capacity of a commodity.

It should be remembered that the energy capacity and the total induction are both proportionality coefficients between the product and its value.

A second cyclical calculation of the real energy used from the beginning of production to the time of sale is made for the offered commodity.

The phrase “real energy” is used by the author to describe energy found in raw materials, materials, the deterioration of fixed assets, etc. Meaning that a true energy with its own dimension must be found in order to compute, and all energies employed to create a utility charge in a product must be in alignment with that dimension. It is not practical. On the other hand, determining the true energy contribution to the product using this information makes it easy to evaluate these energies in terms of their value.

All of the energy sources used today is produced. Even when employing renewable energies like solar or falling water energy, the price of the necessary converters, equipment, etc. ultimately determines the cost of a unit of created energy.

Depending on the economic climate of the nation where the energy is produced, the price of various energies varies.

The physical quantities that control how energy behaves and moves vary depending on the physical setting in which they are defined (vacuum, isotropic media).

Only when all kinds of real energies invested in a product are valued can a system of universal assessment of the real energy of a utility charge and estimation of the actual potential of a product exist.

Thus, in the monetary field of supply, calculation circles determine the value of the contribution of various types of real energies to the creation of real energy of the utility charge of the goods and its movement in the commodity chain, and in the commodity field, calculation circles determine the value of the contribution of economic energy to the commodity chain.

If the money supply field determines the monetary force influence on the commodity current, the commodity field determines the contribution of actual energy to the commodity current as a result.

It is clear that monetary induction BR creates real energy ΔR of the utility charge by the moment of its forces.

As item manufacture begins, these commodity field circles are situated along the commodity chain along the streamline’s horizontal plane.

The upshot is that the planes of the money and commodity fields are parallel to one another.
Each step of the product line corresponds to the same pair of mutually perpendicular circles when calculating the contributions of actual energy in the field of commodities and the cost of funds in the field of money.

The final ring on the commodity field calculating circles, between the circle expressing the real energy of costs and the circle representing the entire energy put into the product (cost of sale), is the ring expressing the real energy of the producer’s entrepreneurial ability Δr.

The author explores the dynamics of the movement of energies in the money field.

The potential economic energy φR of the monetary supply field is determined by all of the producer’s financial resources for a batch of commodities, as was previously mentioned.

The potential energy φR of financial resources changes from being potential energy to being kinetic energy with the start of the creation of things.

The author called this process of transition “monetary induction flow” or simply “cash flow” – ФR, which determines all the manufacturer’s cash costs for the manufacture and sale of a batch of goods in the amount of n pieces.

ФR=ΔФR∙n

Where: ΔФR— manufacturer’s cash costs for the manufacture and sale of one product.

Due to the fact that the cash flow is meant for expenditure, it generates a cash flow of negative charges. This will be covered in more detail both below and in the following part 3 of the reported research findings.

ℰiR is the development of a financial induction force that regulates cash flow and produces a cash flow. This was spent on costs associated with producing the items. According to the author, economic “costs” serve the same purpose as electrical “resistance” and mechanical “friction” [4].

The main sources of the commodity current, or the place where commodities are produced and moved along the supply chain, are induction and monetary current:

ℰiR=-ΔФR/Δt

The minus sign means that the cash flow is reduced by ΔФR (cost per item) per time Δt.

The author came up with the following law that states: “The induction is equal to the rate of change in the cash flow of the producer’s cash resources, taken with the opposite sign”.

The induction is manifested by the moment of force FR of funds allocated by the manufacturer for the manufacture of goods and all other cash costs, that is, for costs throughout the entire commodity chain.

ℰiR=-ΔФR/Δt=FR∙1piece/Δt=FR∙v

Where: V -speed, envisaged consumption per carrier 1piece. Charge throughout the entire commodity chain over time Δt.

It is clear that the producer’s financial resources influence (create) utility costs in the product and contribute to the commodity current.

Thus, induction ℰiR induces a driving force ℰR costs in the commodity current, which, ultimately, expresses the value of all costs along the entire chain.

ℰiR=-ΔФR/Δt=ℰR=ΔR∙I; FR=ΔR ; V=I.

It is obvious that the rate of expenditure of funds of the manufacturer V is equal in absolute value to the strength of the commodity current I.
The commodity current finishes and the total cost of the costs φR for the full batch of goods is established at the time of purchase and sale.

According to the information above, real production and the development of a utility charge in the final product are directly impacted by the economic energy of the producer’s financial resources.

Negative money current charges on the producer’s resources result in positive utility costs in the final product.

According to the author, changes in the financial environment or in the available financial resources are what lead to the establishment of utility charges in a good, their movement up the supply chain, or the introduction of a commodities current (spending on costs).

The producer’s entrepreneurial abilities and drive, not his financial means, are what create the driving force of profit (d.f.p.).

Potential energy φr Before the initiative to develop a commodity current has even begun, the manufacturer’s entrepreneurial skills are evident. A change in potential energy occurs once product manufacture gets underway φr into the kinetic energy of these resources.

The author called this process of transition — “profit induction stream” or simply “profit stream” —Фr, which calculates all the energy expenses of the manufacturer’s business skills for the production and selling of items in the amount nunit.

Фr=ΔФr∙n

Where: ΔФr — the energy expenses of the manufacturer’s entrepreneurial skills for the production and sale of a single product.

A driving force of profit induction is created ℰir (d.f.p.), which determines the energy consumption and takes part in the creation of a commodity current. This is spent on the movement of goods along the chain without taking into account costs.

The function of the economic system’s forces of profit, according to the author, is analogous to that of the body’s mass and inertial forces in “mechanics”.

This induction is defined by the formula:

ℰir=-ΔФr/Δt

The minus sign means that the energy flow of the entrepreneurial ability of the producer is reduced by ΔФr (cost per item) per time Δt. [14]
The author formulated the law of the phenomenon of profit induction:
With the opposite sign, the rate of change in the energy flow of the producer’s entrepreneurial abilities equals the induction of profit. This induction is manifested by the moment of forces Fr profit generation Δr goods throughout the supply chain.

ℰ ir=-ΔФr/Δt=Fr∙1piece./Δt=Fr∙v

Where: V -the rate of foreseen induction flow rate arrived per carrier 1piece. utility charge across the entire commodity chain over time Δt .
Thus, the induction ℰir induces a product motive force ℰr profits in commodity current.

ℰir=-ΔФr/Δt=ℰr=Δr∙I; Fr=Δr; V=I.

It is evident that, in absolute terms, the force of the commodity current I equal the rate of induction profit V consumption.

At the time of purchase and sale of the entire batch of goods, the commodity current ends and the final cost of profit φr is determined, which the manufacturer receives from the sale of the entire quantity of goods.

The aforementioned evidence suggests that the manufacturer’s entrepreneurial skills directly influenced how utility costs moved in the commodities stream.

Driving inducing force ℰi1 full induction is:

ℰi1=ℰiR+ℰir=F1∙1unit. =B1∙v∙Δq∙1piece = B1∙v∙Q

The main conclusion, according to the author, is that the commodity current is caused by the changing total field, which includes changes in financial resources (spending on costs) and entrepreneurial abilities. This changing total field results in utility charges being added to products as they are moved through the supply chain.

Driving inducing force ℰi1 of full induction creates an induced commodity-moving force (c.m.f.) of the current in the commodity explorer.
The following will be the actual work involved in creating and moving a charge of utility along the supply chain:

ℰ =ℰR+ℰr;ℰ =ΔR∙I+Δr∙I=(ΔR+Δr)∙I

Where: ℰ R— costs in the commodity current of the commodity field.

ℰr— Profit or work of the producer’s entrepreneurial skills in the commodity field’s present market
This commodity current is the work of the sum of forces: ΔR+Δr.

It is obvious that the total induction B1 of the total supply field with the generalized moment of forces F1 creates a sod of the commodity current. From the foregoing, the author determines the physical meaning of the generalized moment of forces, which is the moment of forces of the total induction B1. This force induces, by the sum of forces ΔR+Δr, the creation of a utility charge and the movement of this charge along the commodity chain, that is, this generalized moment of forces induces a commodity current.

The kinetic energy of moving objects becomes their potential energy during the act of acquisition and sale.

At this moment, there is a product itself with real charge energy in it, created by the sum of forces ΔR+Δr:

Q=ℰ∙Δt=(ΔR+Δr)∙1piece.=Δq∙1piece.

The selling price of this item reflects the financial resources that the force of induction as a whole invested in it:

Δφ1=F1∙1unit.

As a result, the product’s total energy W at the time of sale will equal the sum of its real and economic energies:

W=Q+φ1

At the time of purchase, the producer receives the cost of the goods, and the customer then receives the commodities.

Part 2: Commodity-money induction of the demand field.

All financial resources φ2 buyers determine the monetary field of demand for the product in order to replenish their negative charges.

Prior to the purchase and sale of the goods, this field studies the potential economic energy of the buyers’ financial resources; however, once the things are sold (or purchased), this energy converts into kinetic energy, or cash flow.

With the purchase of each product, the money resources of buyers are reduced by one cost Δφ2 paid for the product.

The author called the flow of monetary induction Ф2 of the monetary field of demand all the expenses of buyers for the purchase of a consignment of goods in the amount of n pieces:

Ф2=ΔФ2∙n

Since the beginning of the process of purchasing goods, the expenditure of the cash flow of the resources of buyers for the purchase of one product ΔФ2 for the time Δt, creates a commodity-moving force (c.m.f) ℰi2 of the sale (purchase) of goods, which is the source of the origin of the induced monetary current of the buyers’ resources.

The author referred to this current as the implementation current, which is driven by the money-driving force (m.d.f.) of the implementation:

ℰi2=-ΔФ2 /Δt

The minus sign means that the cash flow, and with it the potential energy φ2 of the buyers’ money resources, decreases and turns into the kinetic energy of the cash flow of realization.

Physics refers to this extracurrent, which opposes the common current. [14]

The author refers to the actions of consumers who purchase items with positive utility costs to balance their negative charges, which need a certain amount of real energy, as the “monetary current of realization”.

It goes without saying that the purchasing power of consumers for a certain batch of a product creates a financial field of demand with distinct lines of force.

Imagine the manufacturer standing at the point of sale with the supply field behind him and the sales current (counterflow) coming from the side of the demand field going towards him. The manufacturer will see the force lines of the demand field spinning counterclockwise.

The author referred to the monetary induction of the demand field as the driving force behind this field.

Monetary induction B2 of the demand field is a physical quantity determined by the ratio of the expenditure of buyers’ money during the time Δt of the purchase of one product to the product itself.
At each of its points, the demand field’s lines of force are parallel to and tangent to the direction of the induction vector for this field.

The complete monetary field of demand is estimated by the market itself using circles. This calculation, which is situated above the negative utility charge, makes use of two concentric circles (above the customer).

These circles are located in a vertical plane perpendicular to the current line of negative charges. The first circle determines the monetary induction BR2 of the recipient’s need for the real energy of the goods and is determined by the moment FR2 of the induction forces directed along the monetary current.

The price of the real energy, ΔR2, of the positive utility charge in the good that the buyer is willing to purchase in order to obtain this energy, is then determined by this force.

The first circle’s area defines how much real energy is needed in terms of economic energy.

The financial induction of profitability is determined by the ring between the first and last circles BL.

The size of this ring defines the market’s economic vitality and profitability for the demand for goods. [2]

The vector of induction force BL determines the moment of force FL of profit induction, which is directed along the streamline and determines the profitability (attractiveness) ΔL of the negative charge or what additionalcost ΔL to the cost of real energy ΔR2 that the buyer needs, he is ready to pay in order to purchase this energy.

The induction force vector has one component BL⟂, which is perpendicular to it. The author called it the normal vector to the area of the circle.

This normal has the capacity to change the stream of realization without doing any labour. [18]

If the identical product with a lower price launches on the market in the space of field lines of the demand field, the normal vector will change the direction of the current toward the low-priced product.

The total induction of the demand field is determined by the radius of the final calculation circle B2:

B2= BR2+BL; F2 =FR2+ FL
BR2=FR2/(Δq∙v)=ΔφR2/Q;BL=FL/(Δq∙v)=ΔφL/Q
B2=F2/(Δq∙v)=F2∙Δt/(Δq∙1piece).=F2∙Δt/Q=φ2/Q
F2=B2∙Δq∙v

Where: ΔφR2 — the value of the real energy of a commodity for which there is a demand.

ΔφL – product profitability.

The costφ2 of purchasing the goods are determined by the full size of the final circle, which represents the economic energy of the market demand for the commodity.

BR2=FR2/(Δq∙v)=ΔφR2/Q;BL=FL/(Δq∙v)=ΔφL/Q

Monetary driving force (m.d.f.) of induction is manifested by the power of realization F2 when buying one product.

ℰi2=-ΔФ2/Δt=F2∙1piece./Δt=F2∙v

Where: V-the rate at which buyers spend money.
This induction creates a monetizing current of realization, which is equal to:

Where: ΔR2+ΔL — the amount indicating the buyer’s demand, or the economic energy of the current’s negative charge.

The author has accepted the convention that the time Δt of manufacturing the goods and moving to the point of sale is equal to the same time Δt during which this product will be sold.

It is obvious that: I2=I.

Where: I2– negative charge current rate.
I – the speed of the commodity current of the supply field.

During the buying and selling process, the selling current from the buyers balances the rising commodity current from the producer. This indicates that items are sold assoon asthey arrive at points of sale rather than piling up there. As a batch of products is sold, the commodity current decreases until it reaches “zero” with the sale of the final product.

At the time of purchase and sale, the buyer receives the goods and pays for it Δφ2 — the cost by which he buys the goods [2].

The manufacturer reimburses the cost Δφ1 at which he sold the goods. It is obvious that Δφ2=Δφ1 . Part of the value of the goods Δφ2 is replenished by the producer’s money spent on the costs of the goods ΔφR, and the remaining part Δφ2-ΔφR=ΔφL goes to him as profit Δφr, which takes on a monetary form. Profitability on one utility charge will be Δr, which will pass to the producer as profit ∆r.

The author called this part ΔL of the total cost φ2, — the average profitability of the market for a certain product, because in the market the same product can have different prices or different profits at the same price.

The total profitability per batch of goods sold in the amount of n pieces will be

L=ΔL∙n
Δφ2–ΔφR=ΔφL=Δφr or ΔL= Δr

The manufacturer’s main factor in the calculations should be the average market profitability.

The market’s maximum profitability for a specific product is taken into consideration in accordance with the manufacturer’s biggest profit in comparison to rivals.

Based on the results of the aforementioned investigations, the author draws the conclusion that the energy of the money field of demand dictates the energy of the money field of the market for any commodity.
Along the entire supply chain, this energy has the greatest price. It effectively governs and serves as a necessary condition for the emergence of the monetary supply sector. In the absence of demand, nothing will be produced.

Therefore, monetary energy is a manifestation of economic energy in terms of cost attributes and the real activities of commodity-money exchanges. It manifests as the force behind supply- and demand-driven utility charge generation, movement, and realization.

Part 3: Tension of the supply and demand fields

The author’s research introduces the concept and phrase “tension of the commodity-money field”.
The author has researched the benefits of both the supply field E1 and the demand field E2.

The commodity-money field and the force acting on the positive charge of utility coming from the supply and demand fields are identical in strength and direction. [14]

The force lines of the demand field strength E2 are dispersed around the negative charges of purchasers prior to the start of production, indicating that the negative charge is “in search” of a good with a positive utility charge.

As stated by the author:

-A negative utility charge is one that can trade or purchase real energy but does not have a certain amount of actual energy.

-A positive utility charge is one that has real energy and is willing to trade it for the economic energy of a negative charge (cash).

When a producer is in the field of force lines of the field of demand for a certain product, he has the energy of his business talents. He creates a project for the creation of goods and learns that the positive-charged goods he produces will make him money when sold Δr.

Profitability ΔL on this product attracts the producer’s product with negative charges of buyers, and the profit Δr of the positive charge of the producer’s product creates a profit force that moves the product to the market for buyers.

As a result, utility charges that are negative and positive are drawn to one another.

The Coulomb force is the name of this force in physics.

At the source of the commodity current, the producer begins production.
The supply field strength vector travels from the current source to the demand field. The strength vector of the demand field points toward the supply field, not the other way around.

However, if a cheaper product enters the area of tension in the demand field, the intensity vector of the demand field will diverge in the direction of the new supply field.

On the market field, in order for the act of purchase and sale to take place, the condition of equality of the strengths of the fields of demand E2 and supply E1 at the time of the act is necessary

E2=E1

The reciprocal attraction of the negative and positive utility charges results in this equality.

The tension in the field of the supply of goods and money is equal to:

E1=(ΔR+Δr)/Δq =ΔR/Δq+Δr/Δq

The intensity of the supply field is equal to the ratio of the force ΔR+Δr, operating in the commodity chain to a positive charge of utility.
As can be seen from the formula, this tension consists of two parts:

ΔR/Δq— the ratio of the monetary power of costs to the charge of
utility that this power creates.

Δr/Δq – the proportion of this charge’s profit-driven movement to the negative charge at the moment of sale of the items, to the charge itself.

It is obvious that the tension E1 expresses the tension of both monetary and commodity supply fields.

The intensity of the demand field is equal to:

E2=(ΔR+ΔL)/Δq=ΔR/Δq+ ΔL/Δq

The intensity of the demand field is equal to the ratio of the monetary force of demand ΔR+ΔL, comparing the price the buyer is willing to pay for the positive charge in the goods to the charge itself.

This tension has two parts:

  • ΔR/Δq – the proportion between a positive charge’s actual energy and the money power of demand for it.
  • ΔL/Δq – the proportion of the commodity’s positive charge’s negative charge’s pull on money to this charge alone.

These tensions equalize and come together when buying and selling takes place. The buyer gives his money ΔR+ΔL to the manufacturer and buys a positive utility charge in the product. The manufacturer, having received the buyer’s money, gives him the goods with a positive charge and reimburses his cash costsfor the costs and his profit Δr=ΔL takes the form of money. [16]

The equality of the strengths of the fields of supply and demand implies the equality of the costs of purchase Δφ2 and sales Δφ1 goods at the time of sale: Δφ2=Δφ1 or the cost of their charges:

ΔR+Δr=ΔR+ΔL

Dividing both parts of the equation by ΔR — the cost of real energy (or cost advance capital) we get:

1+ Δr/ΔR =1+ΔL/ΔR

The ratio Δr/ΔR — the author called the “monetary moment” of the resulting monetary forces sΔr, and the ratio ΔL/ΔR – “monetary susceptibility”. [18]

The calculations used by all manufacturers are predicated on specific variables from this equation. In actuality, a market’s financial susceptibility and appeal for investment or the sale of imported goods there are influenced by the amount of money available there.

Using the information presented above, the author determined that the money demand field’s source is a negative pole, which is a source of negative charges, and the money supply field’s source is a positive pole, which is a source of positive utility charges.

To characterize the dynamics of commodity-money interactions, the author believes that everything that has been said about variable chainsup to this point also applies to basic commodity chains, albeit in much smaller volumes and amounts. [18]

For example — services of a hairdresser to meet the client’s demand for a haircut:

The cost of the manufacturing variables used on a single client determines the hairdresser’s (maker’s) income. The client’s haircut is the final product that the master makes.

A shift in a hairdresser’s financial resources (financial field) throughout the hair-cutting process causes a positive utility charge in the final product, which then moves up the supply chain to the customer. As a result, just one charge of a common current is required for the entire procedure.

When the things are prepared, the client fulfils his negative charge and pays the master (the haircut is finished). In addition to paying for production expenses, the master makes a profit.

Conclusion

According to the author, there is evidence that the basic physical principles of energy conservation can be applied in economic processes.
The application of physical techniques in the economy was made possible by research that revealed the physical foundations of these processes. The inquiry was built on the author’s theory of economic energy. The author proved the importance of these forces in exchanges between goods and money in order to establish their universality in evaluating actual forms of energies.

These studies’ key finding is that a commodity current is produced by the shifting economic energy of the entire supply field.
The author provides fresh ideas, words, and calculation formula for the new economic theory during the course of the research.
In the sections “electrodynamics” and “electromagnetism,” the author has discovered and delineated directions for modifying the assumptions of classical physics.

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Co-authors:

Ismail-zade Matanat — power engineer, Ph.D. assistant professor Department of the Azerbaijan State Economic University (UNEK), inventor of WIPO.

Ismail-zade Ismail — mechanical engineer, entrepreneur, inventor of WIPO.

Ismail-zade Kamila — Master of Economics, Entrepreneur, inventor of WIPO.

Ismail-zade Kamil — Master of Economics, Entrepreneur, inventor of WIPO.

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