What if you cannot sell if for the same price (in other words, high paying customers partially pay for lower paying customers).
Afaik, car manufacturing is a pretty low-margin business, about only 5-7% profit. If you sold a car at <1%, you wouldn't make it due to competition and occasional risk. But if your high-paying customer can raise your profits to 20%+, effectively subsidizing low-paying customers, then you'd average at 5-7%.
PS: low margin business is not a bad sign, in open and effective market any business must be low margin.
It definitely makes sense framed that way, if your idea about a society is that high paying customers should subsidise the low paying customers through business
Afaik, car manufacturing is a pretty low-margin business, about only 5-7% profit. If you sold a car at <1%, you wouldn't make it due to competition and occasional risk. But if your high-paying customer can raise your profits to 20%+, effectively subsidizing low-paying customers, then you'd average at 5-7%.
PS: low margin business is not a bad sign, in open and effective market any business must be low margin.