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On profitability: From Investopedia (which is a poor source for economic principles, but hopefully acceptable for news items): ...Google does not report specific figures identifying the financial performance of its Maps product... So not even Google Maps' profitability is known to the public. Note that Google Street View is a subunit of Google Maps, and ...


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That seems correct. For a concrete example, suppose this company has a wages bill of £80,000 other costs of £20,000. And a 10% profit margin. So its takings are £110,000 If it gives a 5% pay rise, its wage costs increase to £84000, other costs remain the same, so to maintain a 10% profit margin it must have taking of $1.1×(84000+20000) = 114400$ And that ...


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The textbook likely talks about net profit not gross profit If we start by assuming original net profit margin was 10%: $$0.1 = \frac{TR-TC}{TR} \tag{*}$$ where TR is total revenue and TC total cost, if 80% of TC increases by 5% we have the following change for TC: $$TC(0.2 + 0.8\cdot 1.05) \tag{**}$$ Next, if we want to keep net profit margin constant we ...


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Economic profit I think there are some problems with the formulation in your question, first you heavily focus on opportunity cost but note accounting profit does not even properly capture all revenue firm gets. I will first focus on economic profit more broadly and at the end go back to opportunity cost. Following Varian Microeconomic Analysis pp 24 (...


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