Bill, turnover rates are an important factor. If a supermarket sells a loaf of bread each day. The bread costs $1 and it sells for $1.01. But it makes $3.65 per year on the bread.
On Mon, Dec 10, 2001 at 07:20:42PM -0600, William S. Lear wrote: > On Monday, December 10, 2001 at 16:15:35 (-0800) Michael Perelman writes: > >Jim is right. What is the cost per unit? Does it include the > >depreciation of durable plant and equipment? If so, the invested value of > >the durable plant and equipment would be in the denominator. > > > >Because economists and accountants have no realistic way of putting a > >value on durable equipment, profit ratios are often questionable. > > So, using profit ratios (profit *rate*, or profit *margin*) is not a > good way to view how competitive a market is? > > > Bill > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
