Question

This chapter posed several variations of the word profit but noted that in a barter situation, profit is gained by both parties involved in the exchange. Do you agree or disagree that equality of profit is also a valid concept in a money-based trading system? What implications does this have for consumers who seek to purchase hospitality products and services, as well as for those hospitality professionals responsible for establishing prices?

Answer 1

In a money-based trading system, equality of profit is not guaranteed. This can impact the prices consumers pay for hospitality products and services and requires hospitality professionals to balance profitability with market competitiveness and customer satisfaction.

Step-by-step explanation:

In a money-based trading system, equality of profit is not always guaranteed as it depends on various factors such as market conditions, competition, and bargaining power. In this system, the profit is determined by the difference between the cost of producing or providing a product or service and the selling price.

For consumers seeking to purchase hospitality products and services, the implications of profit inequality can be reflected in the prices they pay. Businesses that aim for higher profits may set higher prices, while those with lower profit margins might offer more competitive prices.

For hospitality professionals responsible for establishing prices, profit considerations are important. They need to balance the need for profitability with market competitiveness and customer satisfaction. This includes considering factors such as cost of goods, overhead expenses, market demand, and desired profit margin.