Energy Conservation and Profit

Profit Margin Definition

“Profit margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.

the amount by which revenue from sales exceeds costs in a business.

Jul 3, 2019 · Key Takeaways. Profit margin gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues. Expressed as a percentage, profit margin indicates how many cents of profit the business has generated for each dollar of sale.”

—–Investopedia

Preservation and enhancement of profit margin has been the priority of the energy/fuel industry since day one.

Saving fuel does not. cannot, and will not save the consumer money…..Not if the producers and purveyors of energy and  fuel have anything to say about it…

(the law of) diminishing returns:

“[U]sed to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.

Diminishing returns, also called law of diminishing returns or principle of diminishingmarginal productivity, economic law stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield …”

“In economics, diminishing returns is the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.”

——Diminishing returns – Wikipedia

“What Is The Law Of Diminishing Returns and Why Does It Matter? –

Pouring more gas in the car won’t make it go any faster. This is the law of diminishing returns.”

—-The Street, Jan 11, 2019

Conserving energy and reducing consumption drive the cost of energy up making use of energy more expensive…

Conclusion:

Saving/Conserving energy, and the fuel that produces it, results in higher prices to consumers…

Energy/fuel producers are making more money today than ever before. This is in the face of energy/fuel conservation and efficiency efforts.

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