by Rip shirts like hulk hogan. July 13, 2008
Profits, in short, resulting from the relationships of costs to prices, not only tell us which goods it is most economical to make, but which are the most economical ways to make them. These questions must be answered by a socialist system no less than by a capitalist one; they must be answered by any conceivable economic system; and for the overwhelming bulk of the commodities and services that are produced, the answers supplied by profit and loss under competitive free enterprise are incomparably superior to those that could be obtained by any other method.
Profits guide and channel the factors of production so as to apportion the relative output of thousands of different commodities in accordance with demand. No bureaucrat, no matter how brilliant, can solve this problem arbitrarily. Free prices and free profits will maximize production and relieve shortages ipso facto more quickly than any other system. Arbitrarily fixed prices and arbitrarily limited profits can only prolong shortages and reduce production and employment.
The function of profits, finally, is to put constant and unremitting pressure on the head of every competitive business to introduce further economies and efficiencies, no matter to what stage these may already have been brought.
Profits guide and channel the factors of production so as to apportion the relative output of thousands of different commodities in accordance with demand. No bureaucrat, no matter how brilliant, can solve this problem arbitrarily. Free prices and free profits will maximize production and relieve shortages ipso facto more quickly than any other system. Arbitrarily fixed prices and arbitrarily limited profits can only prolong shortages and reduce production and employment.
The function of profits, finally, is to put constant and unremitting pressure on the head of every competitive business to introduce further economies and efficiencies, no matter to what stage these may already have been brought.
"Contrary to a popular impression, profits are achieved not by raising prices, but by introducing economies and efficiencies that cut costs of production. It seldom happens (and unless there is a government-responsible monopoly it never happens over a long period) that every firm in an industry makes a profit. The price charged by all firms for the same commodity or service must be the same; those who try to charge a higher price do not find buyers. Therefore, the largest profits go to the firms that have achieved the lowest costs of production. These expand at the expense of the inefficient firms with higher costs. It is thus that the consumer and the public are served."
by The Savvy Economist February 19, 2010
If a business makes a profit, the company must turn the money back into the business to not show a profit.
The hospital made a profit but created a new wing with the money so they are a not-for-profit business.
by worker123 January 18, 2009
She was totally annoying, but the violent break up was worth the profit, which i use to masturbate often.
by Judy Millz December 8, 2010
Profit is a corrupt form of getting money. The maths can prove this.
Price = Cost of production + profit.
Rearrange to get:
Price - profit = cost of production. The product suddenly costs less.
It is impossible to gain profit fairly because it is stealing.
If you are Christian, Matthew 6:24: You cannot serve both God and Money.
If you are not religious, trust your morals.
It is the anti-Robin Hood effect. Steal from the poor, give to the rich. That is what profit does, floats to the top.
Price = Cost of production + profit.
Rearrange to get:
Price - profit = cost of production. The product suddenly costs less.
It is impossible to gain profit fairly because it is stealing.
If you are Christian, Matthew 6:24: You cannot serve both God and Money.
If you are not religious, trust your morals.
It is the anti-Robin Hood effect. Steal from the poor, give to the rich. That is what profit does, floats to the top.
Look at that man with his big house. How many people has he stolen from to get that? Where has the profit come from? The majority.
by Comrade Jon May 30, 2008
by Grassette Films. December 4, 2009
A mostly-friendly way to challenge someone, asking "What's in it for me?" or "Why would I want to do that?"
by DML November 10, 2010