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True, but really high profits also enable them to pay higher salaries. Obviously they don't put all their profits into salaries.
by dgoldstein0 8y ago
True, but really high profits also enable them to pay higher salaries. Obviously they don't put all their profits into salaries.
- paulsutter 8y agoHigh margins allow high salaries. Any money put into salaries is not profits it’s an expense. This may sound like a nit but it’s important because they have high profits despite high salaries. It shows the lopsided value of well managed network effects businesses.