In an exchange economy, where goods or services are well-made and exchanged for one another’s needs in the market, rather than through barter, ‘price’ holds significant importance. The key to business success lies in understanding the prime cost and establishing a ‘price’ based on that cost. If sales surge when a product that typically does not sell well is offered at a very low price, there must be a reason for the low price, as well as an explanation for why it does not sell at a higher price. The price results from the interaction of producers, consumers, and all other market variables. To identify the causes of problems in your business, you must first examine the price adequacy of the product or service you are selling. Price is not merely a number. - Joseph’s “just my thoughts”
What happens if you have significant debt but also have the ability to issue money? In this case, the debt may become irrelevant. While the government can issue currency, the private sector lacks this capability. So, how does the private sector create money? There are limited methods, including adding value through production, establishing reasons for exchange that involve considerations, or receiving a gift, such as an inheritance. All other methods are illegal.
- Joseph’s “just my thoughts”
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