3 ms·
Of course, this is very much what a business is. It's an engine, running on the difference in energy between two or more goods or services. In fact, if you thi
by taneq 4y ago
Of course, this is very much what a business is. It's an engine, running on the difference in energy between two or more goods or services.
In fact, if you think about it, the upper limit to profit margin is
profit_margin = (price_sell - price_buy) / price_sell
Look familiar?
- selestify 4y agoWow, how have I not heard of this framing before? So then, are there equivalent analogies to the laws of thermodynamics? An equivalent entropy as an arrow of time?
- eru 4y agoNot really. In vaguely thermodynamic terms, businesses are very open systems. Thermodynamics doesn't have to say very much about systems far from the equilibrium.
- anticensor 4y agoDecrease of profit margins over time?