Besides paying services, the location and salaries no business needs more money than that to exist. It is advisable to have some reserves to cushion for an emergency or a needed investment but that does not require millions sitting in a bank account.
I might be severely misunderstanding you. Are you saying that the cost of production is not a concern when the government is deciding the maximum allowable price of a good or service?
It’s because useful idiots kept paying it.
Products are priced according to what people are willing to pay, not what they cost to produce.
Every moron telling you “they’re a business and they need to make money!” is directly responsible for why things are they way they are.
Besides paying services, the location and salaries no business needs more money than that to exist. It is advisable to have some reserves to cushion for an emergency or a needed investment but that does not require millions sitting in a bank account.
No offense but you are aware that products are priced by where supply and demand intersect, right? The cost to produce does matter.
Only insomuch as setting a price floor, but not a ceiling
I might be severely misunderstanding you. Are you saying that the cost of production is not a concern when the government is deciding the maximum allowable price of a good or service?
Ah, sorry, thought we were talking about business setting prices, not government intervention
Correct. What did you mean by setting a price floor?
Well, outside extreme circumstances, the manufacturer isn’t likely to sell below their own cost; hence the manufacturing cost is a price floor
That’s “at cost”, not a price floor.
I still think that would be a de facto price floor, as opposed to the de jure definition you’re referencing.