The four possible responses were (a) an increase in prices, (b) a reduction in profit margins, (c) a reduction in output, and (d) a reduction in costs.
A reduction of profit margins in turn has a direct impact on corporate R&D investment decisions.
Let a perpetrator off the hook and suffer a reduction in profit.
Every reduction in healthcare spending will be a reduction in profit for someone, and each person (or business) facing a loss of income will argue vehemently and vociferously that such a loss of income is a horrible tragedy and an impossible feat.
Even with this reduction, PennyMac stands to make a profit of at least 50percentt, a company official said.
Ms. Arnold forecast that a 15percentt reduction in profit of the drugs next year could result in a 14 cent decrease in earnings per share, which she said would be "manageable" for the company.
7 The appropriate balance between economic and health objectives by policies aimed at reducing pharmaceutical costs, such as those fostering the use of generic drugs or a gradual reduction in profit margins for producers and distributors, 41 has been a decisive factor in this public health success.
Two years ago, when chief executive Philip Clarke launched his £1bn "Build a Better Tesco" plan for the UK, he said the task would involve only a modest reduction in profit margins from 5.8%to5.2%2%.
Outlining his strategy for electronic banking, Mr. Breuer argued that the Internet will cannibalize conventional banking channels and lead to a drastic reduction of profit margins in routine businesses.
The new formula, which calculates the American share without first subtracting the fees and taxes, resulted in a sharp reduction of profit margins at the China Film Group, which remains the clearinghouse for nearly all foreign films imported under an annual quota of 34 movies.
