Our work analyzes the biophysical and economic foundations of the Sherwood Plot (SP). In general, the SP depicts the theoretical relationship between the cost of recovering a target material or an identified Value Added Compound (VAC) from a waste matrix and its dilution in the waste matrix; specifically suggesting that the recovery cost is reverse proportional to the VAC's dilution in it. We further utilize the SP as a scientifically consistent and economically coherent analytical framework for measuring resource recovery performance. Initially, we analyze the SP's fundamental physical properties, as well as its many potential economic extensions. Specifically, we substantiate the relation between a VAC's Entropy, Dilution and Recovery Cost. On these grounds we present the SP's remarkable and numerous economic properties that make it consistent to its physical foundations; thus integrating concisely its physical and economic aspects and postulate a generalized SP function. We further test econometrically the validity of an SP based on both deterministic and stochastic real data from a small-scale industrial unit of polyphenols' recovery from natural fruit juice production residual wastewater. In turn, based on the fusion of our theoretical argumentation and empirical findings we dive into the epistemological extensions of the SP. Specifically, we study how the recovery cost structure at the single industry level is revealed by the SP and can be useful for postulating cost structure ontologies. Cost ontologies are in turn useful as a diagnostic of the formation process of VAC recovery markets as well as their structure and concentration, defining the industrial shares when many industries operate in the recovery of the same VAC.
Keywords: Sherwood Plot (SP); Value Added Compound (VAC); cost ontology; cost structure; dilution; entropy; information entropy; market concentration; market formation process; recovery cost; resource recovery.