Is income always proportional to the investment ?
Is income is always proportional to the investment ?.
If you say YES , then you have not started doing business :) .Why check out this example
1. You invest in selling Beer during the festival season
your investment is 100CHF . you gain profit 50CHF .It is possible because people need Beer at any price during festival seasons
If you think
50CHF profit for 100CHF then 50000CHF for 100000CHF. Wow Good business
But in real life
You cannot carry and sell so many cans of beer and cannot find lots of festival season to sell your 100000CHF worth cans of beer :)
It is simple argument but most of us forget that there is a limit ( saturation ) for the investment