Profit is good because, as Andy Wood says:

It’s only possible to make a profit if your customers are willing to pay more for your product than what it costs to produce.

In other words the outputs are worth more than the inputs. In other words you’ve created wealth. So long, that is, as you haven’t created any externalities, that is imposed costs on others, like pollution for instance.

And, if you have created some negative externalities, like pollution, for instance?

Well, there are ways of dealing with them.

Permalink • Economics • General • Last Updated: 14 November 2006

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