Comment by bloppe
5 months ago
Margins require a competitive edge. If productivity gains are spread throughout a competitive industry, margins will not get bigger; prices will go down.
5 months ago
Margins require a competitive edge. If productivity gains are spread throughout a competitive industry, margins will not get bigger; prices will go down.
That feels optimistic. This kind of naive free market ideology seems to rarely manifest in lower prices.
Every competitive industry has tiny margins. High margin business exists because of lack of competition.
I think there are plenty of counter examples.
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That's because free markets don't always result in competitive industries.
Then maybe you've never worked in a competitive industry. I have. Margins were very small.
I’ve certainly spent time in the marketplace buying or not buying products.