First of all, it is the story of milk coke and economics. Why is milk sold in square boxes and coke sold in round bottles? Because containers have different shapes, they have different costs and benefits, which is the core of economics. In this regard, the author gives an explanation that square containers can use shelf space more economically than cylindrical containers. One of the reasons why soft drink manufacturers insist on using cylindrical containers may be that most of them drink directly from containers, and cylindrical containers are more weighed by hand, which offsets the extra storage costs it brings. This is not the case with milk. Most people don't drink milk directly from the box. Even if they are drunk in boxes, the principle of cost-effectiveness indicates that they are unlikely to be sold in cylindrical containers. Because square containers (no matter what is inside) can really save shelf space, and in the case of milk, the space saved is obviously more cost-effective than soft drinks. Soft drinks in supermarkets are mostly placed on open shelves, which are cheap and usually have no operating costs. However, milk needs to be specially packed in the freezer, which is expensive and has high operating costs. Therefore, the storage space in the refrigerator is very valuable, which improves the income of square container milk.
Did you have an epiphany after reading it? It turns out that economics is so close to our lives that we are unaware of it. There are countless such examples in the book, and several of them impressed me the most. Although the explanation in the book is only the author's subjective view, it does give us a lot of inspiration and inspire us to think about the problem from multiple angles. You can also give your own opinion.
Why do many bars charge for drinking water but offer free peanuts?
Some bars sell a glass of water for four yuan, but you can have any salted peanuts. What the hell is going on here? The core product of the bar is alcoholic drinks. Peanut and wine complement each other. The more people who drink peanuts eat, the more they want to drink beer or white wine. Providing peanuts for free can increase the profit of the bar. On the contrary, water and wine are substitutes for each other. The more people who drink water, the less wine they order. Bars can set a high price for it or discourage customers from drinking water.
Why do waiters in high-end restaurants earn more than assistant chefs? In high-end restaurants, a waiter can earn hundreds of dollars a night just by tipping, while the assistant chef in the same restaurant only earns dozens of dollars. Most people must think that an excellent assistant chef needs much more skills than becoming an excellent waiter. Then why do waiters earn so much? The job of assistant chef provides the necessary training and experience for the promotion of chef. On the other hand, a chef is a respected and well-paid profession. On the contrary, the waiter is an ultimate position. Many waiters can no longer engage in higher-paying jobs. Even if some people do this, their success has nothing to do with being waiters in the past. Many jobs that require skilled skills have relatively low wages, because they are the stepping stones to their favorite jobs. The position of assistant chef falls into this category.
Why do many schools require students to wear school uniforms?
When many people go to school, they think they can wear whatever they want, which is a basic right. However, when they became parents, the same people began to support the practice of requiring students to wear school uniforms. Because the requirement of wearing school uniforms reduces the money and emotional cost of students investing in clothing competitions.
Why do Japanese couples spend more on weddings than American couples?
To celebrate their marriage, Japanese couples spend twice as much on average as American couples. Although the cost of entertaining each guest in Japan is higher than that in the United States, the main reason for such a huge difference is that Japanese couples tend to invite more guests. They usually invite colleagues, bosses and other social people to attend the wedding, and their interpersonal network covers a wide range. Local politicians are often invited, even if they don't know these people at all. Even for middle-income couples, the guest list is mostly between 300 and 500 people. Part of the reason why Japanese couples spread such a huge interpersonal network is that Japanese society relies heavily on informal social and business networks. If people who think they should be invited are not invited to the wedding, it is likely to bring great social obstacles and endanger the status of the parties. Of course, this kind of network also exists in the United States, but it is far less important than Japan.
Why is it much cheaper to approach a brand-new used car than a new one?
Once the new car leaves the dealer's parking lot, the price immediately drops by more than 20%. Nowadays, the service life of cars is generally more than 200 thousand miles. Why can a few more miles on the odometer make the price of cars drop sharply? Due to the different manufacturing and assembly processes, the reliability of different cars is not exactly the same when new cars are off the assembly line. This difference in reliability is magnified by the difference in car maintenance between different car owners. Although some used cars are new, they are defective, and sometimes even professionally trained maintenance technicians may not compile them. Car owners generally know more about the condition of used cars than potential buyers. Information asymmetry has a great influence on the price of used cars. Therefore, unless there is a big discount on the price of used cars, no one will want to buy them.
Just like every 1000 reader has 1000 Hamlet, the answers are always varied, but Milk Cola Economics only teaches you to look at all the business problems that confuse you with the "colored glasses" of economics, which will always make you suddenly realize from some angles. To sum up, there are only three sentences: to make a choice, we should consider the principle of cost performance, and remember that there is no free lunch when there is an opportunity, and the ups and downs of the market can never be separated from the relationship between supply and demand. Furthermore, the pursuit of profit maximization is the sole purpose of businessmen.