electric cars Tag

Vertical-integration

Posted On September 24, 2014By adminIn What's government doing?

Why is selling direct a bad thing?

One of the most interesting games in the capitalist town is the notion of vertical integration or direct selling. If we start very small scale, one shop may operate as a bakery, and sell its bread and cakes to the local population. So the cost to the buyer is the cost of raw materials, labor, general overheads and a profit margin. Now let’s make this a larger operation. The bakery expands its production capacity and can make enough bread and cakes to supply five shops in the city. Although there’sRead More