An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
The difference between the apparent profit of the retail and that of the
wholesale trade, is much less in the capital than in small towns and
country villages. Where ten thousand pounds can be employed in the
grocery trade, the wages of the grocer's labour must be a very trifling
addition to the real profits of so great a stock. The apparent profits
of the wealthy retailer, therefore, are there more nearly upon a level
with these of the wholesale merchant. It is upon this account that goods
sold by retail are generally and frequently much cheaper, in the capital
than in small towns and country villages. Grocery goods, for example,
are generally much cheaper; bread and butchers' meat frequently as
cheap. It costs no more to bring grocery goods to the great town than to
the country village; but it costs a great deal more to bring corn and
cattle, as the greater part of them must be brought from a much greater
distance. The prime cost of grocery goods, therefore, being the same in
both places, they are cheapest where the least profit is charged upon
them. The prime cost of bread and butchers' meat is greater in the great
town than in the country village; and though the profit is less,
therefore they are not always cheaper there, but often equally cheap. In
such articles as bread and butchers' meat, the the same cause which
diminishes apparent profit, increases prime cost. The extent of the
market, by giving employment to greater stocks, diminishes apparent
profit; but by requiring supplies from a greater distance, it increases
prime cost. This diminution of the one and increase of the other, seem,
in most cases, nearly to counterbalance one another, which is probably
the reason that, though the prices of corn and cattle are commonly very
different in different parts of the kingdom, those of bread and
butchers' meat are generally very nearly the same through the greater
part of it.
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