This article discussed about Coles give up the short-term profit for long-term growth, by this plan,the interest and tax raised a lot.In different months the interests are different,therefore,in Christmas the profit went up continue through January and February across the retail businesses.It's far betterto grow volumes and build relationships with customers for the long term than it is for us to grow margins. 1.The first concept about this article is long run. Long run means that a firm wants to have long profit,that long run do not have fixed cost,the variable cost can rise or down during the period.And other things which the firm need can be changed also.(MUFY PPT 2015) Coles,Target,Officeworks they are all long-run firms.So what they …show more content…
2.The second concept about this article is profit Profit means in economics,the driving force for business firms is profit.(MUFY PPT 2015) Profit is total revenue minus total coat.Every company need profit to continue.The higher profit,the better it runs.(http://en.wikipedia.org/wiki/Profit) Accounting profit is different from economics profit,but every company needs profit to run.In this newspaper,profits rose 10 per cent to $618 million.(Sue Mitchell …show more content…
It is talk about there are advantages and disadvantages with tax.On one hand,if there was no tax,the buyer will buy goods in a lower price.On the other hand,if there had tax,the sellers will sell on a higher price,the buyer will buy goods in a higher sales price.(MUFY PPT 2015) Tax is the important revenue for a country.Because of tax,buyer will pay the things in a high price.On the other hand,tax has advantages like it can control the market. According to this article,interest and tax rose 5.9 per cent to $2.1 billion. (Sue Mitchell 2015) Everything has tax.It can affect the economics.The group earnings before profit and tax rose 5.9 per cent,but when the company pays the tax, the interest will decrease.And there are two situations.The first one is the cost increase,so the demand will not affect.The second one is the sales price increase,then the demand will decrease.Therefore, buyers and sellers will share the tax,and when the firms do not want to assume the tax,then the consumers will assume the tax.On the other hand,because of the tax,demand will decrease. This article has helped my understanding that the firms can decide which types of production they want to product will influence the period of the firm.The profit can effect a company’s development.Tax is an important data in the