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Old June 10, 2013, 06:46 PM
Zunaid Zunaid is offline
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Join Date: January 22, 2004
Posts: 22,099

Quote:
Originally Posted by al Furqaan
Efficient because of the ratio of profit to expense. You can argue that the quality is poor and hence expenditures are low. But then profits should be even lower due to having a poor product. Thus the ratio holds.
Not necessarily. It can happen in a monopoly where there is a high demand for the product. One doesn't new to spend a lot on R&D and product quality because there is a demand. One doesn't need to invest in states of the art facilities because there is a demand. The danger with monopolies dealing with products not indispensable is that the customer base eventually weans itself out instead of forking out for whatever shoddy thing is on the market shelf. After a while, we will all wean ourself from Bangladesh cricket. You'll end up paying good money to watch Qari competition with Rifat. I'll be sports betting on 3-dimensional chess, and Shakib will be a billionaire CEO of a hot new social media company.
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