How is cutting taxes on corporations going to help anyone?

[chuck_curtis]

You set the price to maximize profits.

Business people don't set the price.  The price is determined by the marketplace (buyers and sellers), including taxes and regulations.   The job of the businessperson is to sell as much product as possible.   If I go out and get some oil out of the ground, or make a widget, the price is already determined.

[darkflower]

Yes, they do set the price. The market determines what price gives the maximum profit when taking into account the costs. But a business can set any price they like. They try to set it to get the max profit. It is not the case that a product or service can only sell at just one price.

No, the job is not to sell as many as possible. Doing that would require selling at cost (or worse, below cost or free or paying people to take it). Their goal is to maximize profit, not units sold. Not quite the same goal.

[chuck_curtis]

I'm afraid you are wrong.  They can set the price to anything they want, but as a practical matter they will make the most profit by setting the price to achieve maximum sales volume.   The profit per item is limited by the price set by the marketplace, taxes, regulations, and the ability of the maker to produce the product at lowest possible cost, and cannot be arbitrarily set by the maker if he intends to succeed in the business.

[caserio1]

bullshit

in my business I set the price..........................period

[darkflower]

Higher price means lower volume but more profit for each one. Lower price means higher volume but less profit per item. Max profit means maximizing volume x profit/item. Maximizing only one side, volume or profit/item will not give max profit. It is a balancing act.

A business can easily survive without max profit, it just needs profit to survive. But they try to get it maxed.

Either way, it is impossible to recover a profit tax by raising prices, unless the price was nowhere near the price for maximum profit.

[sine-qua-non]

Went by my corporate drug store the other day.
They had a sign that said "Free Flu Shots" !!!

What is that worth then? Who sets that price ?

[chuck_curtis]

Higher price means lower volume but more profit for each one.

Higher price means your competitor (selling at lower price) gets the business, sells more product, and makes more profit in toto.

[DaBoz]

 

Higher price means lower volume but more profit for each one.

Higher price means your competitor (selling at lower price) gets the business, sells more product, and makes more profit in toto.

I think that econ 101.

[darkflower]

Higher price means your competitor (selling at lower price) gets the business, sells more product, and makes more profit in toto.

Sorry, but no. You are wrong.

Your competitor would get more volume, yes. I already said as much. You raise price, you get less volume. Lower it, you get more volume. That does not mean you get more profit. That depends on the profit per item and how much the volume changes. Your competitor might make more profit or less profit, it depends on the specifics.

You all should pay me for teaching you basic economics.

[D2D]

Less volume means less employees resulting in higher unemployment!

[DaBoz]

Is that a Problem, Democrats solution, give them food stamps and welfare.

[D2D]

Democrats do not realize the damage dependency inflicts upon people!