[deltaonefour]

>As a result, our output suffers. What we produce becomes less than what we put in. We achieve only an iota of what we’re capable.

This is assuming output is multiplicative. Output is usually additive if you're an employee as you only reap benefits in terms of salary. Thus it is in your best interest as an employee to apply 0.8.

For an entrepreneur output is multiplicative because your output scales with customers. As an entrepreneur it is in your best interest to apply all your effort as when more customers use your product you gain more benefit.