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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (26288)	3/25/2005 12:16:56 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

When there is no ability to pass on costs tax on business comes out of business profits. Those businesses who can afford to shut their doors when they are not able to achieve an acceptable rate of return are few. Most businesses will continue to operate even the prices they are able to charge cover only their marginal costs and their sales fail to cover their overhead. Ultimately prices rise to an acceptable level in an industry only after enough businesses have failed to match the reduced consumer demand. .