Jul 08, 2008, 22:30 (0 Talkback[s])
(Other stories by Russ Nelson)
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"In a free market, over time, competition in the production of a
commodity product will eliminate all profits. Bread-makers can sell
their bread for enough money to cover the cost of the capital
invested in the bakery, the cost of the flour, yeast, sugar, and
water, the fuel needed for firing, and the salary of the baker.
They can earn no more money than that. If they did, then another
bakery would be established which would price its products lower,
splitting that profit between the customer and the owner of the new
"In order to earn a profit, you need to do something special
(called a franchise). This could have several forms: you could
create something new that nobody else has..."