Wednesday, December 3, 2008

Cost vs Profit, not always conflict

Usually when increasing cost we expect that this will decrease profit. 

But the function bewteen cost and profit may not be that simple. If we look at the cost from the point of view of investment, it is easier to see that investment will likely stimulate profit growing. The growth rate of profit may be larger than that of your investment. So the cost increase, the profit may increase even more.

-Bing Liu

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