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Everyone involved includes those who put forth the capital to start businesses. The profit goes to them eventually via the stock market.

Individuals won't put up millions or billions to start large companies without a reason.

"models" remove human motivations and will never be realistic.

It's why Socialism and Communism are perfect on paper... but fail spectacularly in real life.




Not necessarily the stock market, but yes of course all models are wrong. Some are useful though, including these models. You can see that a pharma company with a government granted monopoly with patent power has high gross margins, while a more undifferentiated retail firm like walmart has far lower gross margins. That understanding can be drawn from using these models to understand how businesses will behave under a set of given assumptions (they want to maximize profit etc)




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