Nate Schram | Arkansas news, politics, opinion, restaurants, music, movies and art

Nate Schram 
Member since Nov 1, 2011


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Re: “Occupy Wall Street from home

"Anyone who says that "costs are passed along to the consumer" should not be commenting on threads involving economics, let alone commenting from a conservative perspective.

Such a viewpoint contradicts the concept of the free market and capitalism itself.

It is NOT:
Cost + Profit = Price.

But rather:
Price - Cost = Profit."


Just a little high school math for you:

Cost + Profit = Price
and
Price - Cost = Profit

are the same equation.

By-the-way these companies know what kind of profit they want to make. So yes, when looking at this problem on a time-scale, The price of an item is determined by taking the total value of supplying it to the customer subtracted from the profit they intend to make. Really the equation you are looking for is something like this:

Profit - Cost = Price

Posted by Nate Schram on 11/01/2011 at 10:16 PM

 

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