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Over time, the cost of processing go down because as organizations learn how to do things better, they become more efficient.
In color flim processing, for example, the cost off a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents
for one-day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate
its 25th birthday, we can expect that our long experience will enable us to minimize costs and thus
maximize profits."


The author claim that over time, the cost of processing go down because the organizations learn how to do things better. The author mentioned an example of 3-by-5 inch print fell from 50 cents to 20 cents of a film by learning cost efficient production due to time. The author concluded because of cost minimization the firm thus maximize profits.

Firstly, the argument is based on analogy between filming and food processing firm, where the author is comparing apples with oranges. The argument is reasoning behind a typical fliming product with food processing and lacking an identical comparison between them. Improvement on technology of film industry, trained human resource, availability of resources can also lead to cost minimization factors. Food processing is unique comparing to filming industry. Processing itself is not a factor of cost minimization in food industry. Cost of raw materials, labour cost, quality control, sales and marketing are other factor of cost inherent in food processing industry.

Secondly, the author is claiming a sampling argument giving a typical sample of a film print and the author give less attention to other types of production. Outfit of production, low sales, less customer preferences, low quality aspect are the reason behind low cost . The author gives argument based on spread for profit maximization. High sales volume with lesser spread can also lead to maximize profit in other sense . Here food processing techniques with better learning can minimize cost but better quality, taste, demand of product, product diversification, customer preferences, substitute product, competitors are the missing factors behind the argument.

Therefore, the argument is based on analogy and sample of a typical film product for cost reduction by learning over time to maximize profit. In fact the argument is missing to compare the same product, large sampling techniques and different aspect of profit maximization factors such as high sales, product quality, fashion, etc.

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