Isn't a net profit of 10% enough? Why are big companies only catering to shareholders? Are they? I am a shareholder and have never endorsed gas companies to increase gas prices at the pumps for Americans.
2007-02-26 03:05:23 · 5 answers · asked by PrettyEskimo 4 in Home & Garden ➔ Other - Home & Garden
Last time I checked, there were no rules in capitalism regarding how much profit a company can make. If enough people are willing to pay for a product for the company to make a profit, whatever the margin, then it must be priced satisfactorily.
2007-02-26 03:09:25 · answer #1 · answered by thegubmint 7 · 0⤊ 0⤋
It's the "free enterprise system" at work. Companies are in business to make a profit--as large a profit as the market will allow. In theory, if a company charges "too much" for its products or services, fewer people will buy them, and then the company will adjust its prices down to what the market will support in order for them to stay (profitably) in business.
In theory, people are free to buy or not buy a company's goods or services. Of course, realistically, when it comes to things like the gas companies, people may not have much choice in the matter.
2007-02-26 11:19:34 · answer #2 · answered by clicksqueek 6 · 0⤊ 0⤋
It's called capitalism. They charge what they can get for their product, simple economics.
2007-02-26 11:09:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Profit and greed.
2007-02-27 02:35:46 · answer #4 · answered by noonecanne 7 · 0⤊ 0⤋
free enterprise and because people will pay it.
2007-02-26 13:46:05 · answer #5 · answered by Master Ang Gi Guong 6 · 0⤊ 0⤋