Understanding the argument -
The prices for all kinds of fish sold in Eastville's downtown Old Market are much lower than the prices charged at uptown seafood stores. Fact. SP of fish in uptown>SP of fish in downtown.
Old Market vendors buy fish of similar quality from the same wholesalers and at the same prices as uptown vendors do. So if the material cost is the same. the profits would be high for Uptown (just hold on to it for now as we don't know much).
Therefore, since Old Market fish vendors' businesses are as profitable as those uptown (oh, so the profitability is the same), the volume of the Old Market vendors' daily fish sales must, on average, be higher.
P (downtown) = (SP-CP)*no. of units sold downtown
P (uptown) = (SP-CP)*no. of units sold uptown.
As P (downtown) = P (uptown), and as the author concludes that no. of units sold downtown>no. Of units sold uptown, the logical deduction is that the (SP-CP for downtown has to be lower than (the SP-CP) for uptown to
...
The prices for all kinds of fish sold in Eastville's downtown Old Market are much lower than the prices charged at uptown seafood stores. Fact. SP of fish in uptown>SP of fish in downtown.
Old Market vendors buy fish of similar quality from the same wholesalers and at the same prices as uptown vendors do. So if the material cost is the same. the profits would be high for Uptown (just hold on to it for now as we don't know much).
Therefore, since Old Market fish vendors' businesses are as profitable as those uptown (oh, so the profitability is the same), the volume of the Old Market vendors' daily fish sales must, on average, be higher.
P (downtown) = (SP-CP)*no. of units sold downtown
P (uptown) = (SP-CP)*no. of units sold uptown.
As P (downtown) = P (uptown), and as the author concludes that no. of units sold downtown>no. Of units sold uptown, the logical deduction is that the (SP-CP for downtown has to be lower than (the SP-CP) for uptown to
...
Statistics : Posted by Raman109 • on 09 May 2016, 01:45 • Replies 14 • Views 28064
