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How does increases in price increase profit?

In: Economics [Edit categories]

Answer:

My profit = the price I charge - my costs

If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.

First answer by Eidllaew. Last edit by Eidllaew. Contributor trust: 165 [recommend contributor ]. Question popularity: 2 [recommend question].

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