alt Hacker NewsSure, there may be a price a customer is willing to pay, but how does the business owner make a profit? Aren't there other people being paid too? If they are paid less, doesn't that sound more like a negotiating position than mere "information" signals?
Replies
WalterBright • 12/09/2025
> how does the business owner make a profit?
Revenue - Expenses = Profit
Free market countries are more abundant than non-free market ones because the system is brutally efficient. If you can't sell something for a profit, you might be forced to sell it for a loss and eat the difference. This is the way the system regulates itself. The business owners invest their resources and own the risk. Employees sell their work hours by a fixed price and this is calculated in the total cost for the business to sell. The price their work is bought by is also regulated by free market and is an input to the total price. They aren't forced to be paid less than the going market rate (may be short term until contract expires) so the prices and unforced cooperation based on price it shte "magic" that makes USA to have 100s of types of biscuits and Cuba to have empty stores.