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PaperclipPerfector  9mo ago (text post)   3314 thread views

Friday Fun Thread for March 22, 2024

Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.

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McDonald’s also may be over-pricing an item and at the same time a new competitor can’t compete due to economy of scale

Then this is better than if they didn't exist, and there were no economies of scale. They can't go below the threshold of what other competitors can compete at, so they have to be at least as good. Any better than that, and that's just free additional value to the consumer.

Thy will have to invest based upon the idea that the business they invest in is actually valuable to society. If it is valuable then it will grow and profit for a period, and if the profits are too extravagant than the Government steps in — and this is a good threat because it makes investors vote for boards that lower prices themselves, lest the government step in.

I'm guessing that investing in expanding the business, research and development, etc. etc. counts in the costs, and lowers profits? Because then many enormous companies operate without profit. If that doesn't count, then you're harming the companies, leading to less economic prosperity. Most companies don't pay out dividends. I imagine it would mostly be small businesses where they just take it as profit, but people seem not to like going after small businesses. Did you realize that it's them that you are targeting mostly?

Edit: That last bit is unfair; I haven't actually checked frequency of dividends.

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