Final answer:
Content suggests that while businesses offering better or cheaper products are likely to increase their profits through online sales, there might also be 'winner-take-all' markets and competition that impact profits. Furthermore, some small businesses exist even without economic profits due to various non-economic factors.
Step-by-step explanation:
The assertion that businesses can increase sales on the Internet but not profits is a topic that can be supported and refuted based on different perspectives and evidence. From the content provided, we understand that consumers benefit from obtaining better or less expensive products, and as a result, businesses that offer these products are likely to increase their profits and provide more income to their employees. This indicates that internet sales can indeed bolster profits for businesses that are able to compete effectively by offering superior or cheaper products.
However, the competition in online markets can sometimes result in 'winner-take-all' scenarios where large firms dominate sales at the expense of smaller competitors. This might suggest that while sales can increase, profits might not necessarily follow, especially for smaller businesses. Additionally, competition from other firms with better or cheaper products can reduce a business's profits or even lead them out of business, highlighting the complexities involved in managing sales and profits online.
It is also noted that some small firms, like 'Mom and Pop' stores, can survive without earning economic profits due to factors such as community support, market niche, or non-economic benefits to owners. These factors suggest a nuanced reality where sales increases do not automatically translate to profit increases for every internet-based business.