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Profit margin can be an indicator of monopolistic behavior, ie if you have a monopoly, you may be able to charge unusually high profit margins and maintain cust
by smiley1437 5y ago
Profit margin can be an indicator of monopolistic behavior, ie if you have a monopoly, you may be able to charge unusually high profit margins and maintain customers.
It's not absolute PROOF though, because maybe you can charge high profit margins because you make really good stuff and people and are willing to pay more.
But in general, in normal competitive markets, if you have a high markup people will tend to seek\buy cheaper alternatives.
- SllX 5y agoThat is not an answer to my questions within the context of the comment I was replying to. > But in general, in normal competitive markets, if you have a high markup people will tend to seek\buy cheaper alternatives. That is in fact what happens. Apple rarely dominates in market share, and they do not have dominant phone market share. I can’t recall a time where they ever did have dominant phone market share.