--- title: "Meaning & Key Takeaway of: Roughly speaking, when you are dealing…" description: "\"Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why?..." image: "https://sms4smile.com/quotes/i/13a/ronald-coase-17623_business_roughly-speaking-when-you-are-dealing-wi_2990660.jpg" --- # Roughly speaking, when you are dealing with business firms… ![“Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.” quote by Ronald Coase](https://sms4smile.com/quotes/i/13a/ronald-coase-17623_business_roughly-speaking-when-you-are-dealing-wi_2990660.jpg) [Download](https://sms4smile.com/quotes/i/13a/ronald-coase-17623_business_roughly-speaking-when-you-are-dealing-wi_2990660.jpg) [Open image](https://sms4smile.com/quotes/i/13a/ronald-coase-17623_business_roughly-speaking-when-you-are-dealing-wi_2990660.jpg) > “Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.” [Ronald Coase](https://sms4smile.com/quotes/author/ronald-coase/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Firms act rationally to avoid losses; buying high and selling low is unsustainable. **In simple terms:** Businesses avoid loss; act rationally. Key Takeaway Make decisions that preserve profit margins. Themes economics rationality business profit Mood analytical pragmatic Type economic business When to use this quote - pricing strategy - budget planning - risk assessment - competitive analysis - financial forecasting Key Concepts cost‑benefit analysis market competition Questions to Reflect On - How do you ensure rational decisions under uncertainty? - What safeguards protect against loss? 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