As a business owner, I'm surprised you don't know the term opportunity cost. What it is is the investment returns you can get by doing something simple and safe, like investing in bonds. There's no reason to be in business if you can't do better than that.
> But employees don't know their value
Your assumption that employees are stupid and ignorant is false.
> Anecdotally
I.e. you don't really have the data.
> that depend on perfect market equilibrium
Nope. I said that market forces push it in that direction.
> I'm surprised you don't know the term opportunity cost.
Assumptions. I know it. I'm saying that it makes zero sense to put it in your equation as you have. Your equation appears to be per employee (but you are not talking about the employee opportunity cost). You are adding in the business opportunity cost of money to your equation - a per business cost not a per employee cost. Again you are mixing implicit types which makes your equation meaningless.
> Your assumption that employees are stupid and ignorant
You are making the assumption. I never said that and I certainly don't think it.
> But employees don't know their value
Your assumption that employees are stupid and ignorant is false.
> Anecdotally
I.e. you don't really have the data.
> that depend on perfect market equilibrium
Nope. I said that market forces push it in that direction.