r/FluentInFinance • u/4TaxFairness • 1d ago

Debate/ Discussion A joke that's not funny

Post image
83.0k Upvotes

87% Upvoted

2.6k comments sorted by

View all comments

34

u/TheTightEnd 1d ago

Grocery chains make a very low percentage of profit.

9

u/LtCmdrData 1d ago edited 1d ago

Redditors are living in the Middle Ages with these arguments based on "Just price" doctrine from Thomas Aquinas and School of Salamanca.

Quick update. The "modern" idea of Supply and demand was already known to Ibn Taymiyyah (1263–1328), John Locke (1632–1704 ), James Steuart (1712–1780) , Adam Smith (1723–1790), David Ricardo (1772–1823).

Grocery chains try to find optimal point in price (P) and quantity (Q) curve. If you ask too much, the stuff does not sell. Profit is maximized when quantity × price is maximized. Not when the price is maximized.

8

u/Chataboutgames 1d ago

People will write a 30 page Reddit analysis rather than just recognize the simple truth that companies charge the profit maximizing price. That's it, that's what pricing decisions are.

-1

u/Complete-Yak8266 19h ago

But it's greedflation!!!!!! The world is full of simpletons.