Say I buy a 2 dollar bottle of Coke from a grocery store. I go up to the cashier, I give them the money, they put it in the till, and I walk away. I have given money to the store, who presumably will then use that 2 dollars to fill out their employees paychecks, pay for things in the store like water, electricity, heating, janitorial staff for cleaning, etc, etc.
After all of that, how will Coke ever see my 2 dollars? It would seem to be that the money would have diluted beyond all recognition by that point.
In: Economics
So that Coke you spent $2 on cost the store $1, paid to Coca-Cola when it was delivered. The other $1 goes to cover the items you mentioned. When the store has paid salaries, rent, utilities, advertising, etc. and in the end about 5 cents of profit is left.
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