#TBT: Cost Doesn’t Have Anything to Do With Price

Happy #TBT. To celebrate, we’re sharing an oldie-but-goodie post from Jim: The Wisdom of the Soda Seller. Suppose I have a really simple business: I sell sodas on the beach from a little booth. (Actually, some days, that would sound kind of appealing.) My two expenses are the rent that I pay for the booth and the cost of the soda, which I pay to a wholesaler. And let’s say I pay the wholesaler $.50 per soda and sell it to you...

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