On Tue, 2004-11-09 at 10:08, jhrothjr wrote:
>
> Profit correlates to market inequities.
> Risktaking behavior and execution efficiency
> are both inequities.
>
> The analysis is that if there are a number
> of suppliers and consumers of the same commodity
> product, the consumers will, of course, buy
> from the least expensive supplier. The rest
> of the suppliers will have to cut prices to
> compete. This will continue until everyone
> is functioning at a break-even level; there is
> no profit (cost - sale price) for anyone.
That's not how it works in my experience. Once the profit is below the
level they can achieve somewhere else, they switch their resources to
that other activity.
Once everybody's done moving around, the equilibrium level will be
positive, not zero. Why? For labor, it's because people create value
with their labor. And for capital, it's because people can use capital
to increase labor productivity. I think the equilibrium level for
capital would be the average annual increase in GDP (or GWP if you're
presuming costless movement across country borders). I'm not sure what
the equilibrium level for wages would be.
William
To Post a message, send it to: [EMAIL PROTECTED]
To Unsubscribe, send a blank message to: [EMAIL PROTECTED]
ad-free courtesy of objectmentor.com
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/extremeprogramming/
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
