5 ms·
How would you compete with other businesses’s that either choose to lower prices or increase investment funding due to the equity’s higher ROI? The market work
by lotsofpulp 1y ago
How would you compete with other businesses’s that either choose to lower prices or increase investment funding due to the equity’s higher ROI?
The market works because all actors are buyers and sellers, and when buying, you are seeking the lowest price, and when selling, you are seeking the highest price.
If you stop doing that, someone will outcompete you by allocating resources better (absent corruption). It even applies on a household level, where if you spend extra on charity or groceries or whatever, you will have a smaller downpayment to compete for the house you want.
Also, generally, employee pay is highly correlate with the employer’s profit margin (outside of healthcare due to heavy government involvement).
- deleted 1y ago[deleted]
- deleted 1y ago[deleted]
- DangitBobby 1y agoIf you have to compete then you have to compete. Let's not pretend that prudent reinvestment of hard-won gains in the face of fierce competition is how wealth inequality has managed to spiral out of control, though. There's econ 101 and then there's reality. Edit: Also looking for how this market theory explains absurd CEO compensation packages in a world where they quite obviously are not worth the price tag.