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Have you found any commodity where there isn't a push to lower the cost? That's pretty much what capitalism does.
by manachar 10y ago
Have you found any commodity where there isn't a push to lower the cost? That's pretty much what capitalism does.
- harigov 10y agoGiven that capitalism is a balancing act, I wish there is a drive towards incorporating externalities like employee happiness, safety, environmental friendliness, etc., on to the products by introducing some sort of ratings and making sure that all the products include that.
- mikeyouse 10y agoWhole Foods provides ratings on its meat[1] -- but instead of $5 for an entire chicken from Safeway, it's more like $7/lb for boneless/skinless breasts at Whole Foods. It turns out that social responsibility is expensive. [1] - https://www.wholefoodsmarket.com/mission-values/animal-welfare/animal-welfare-basics https://www.wholefoodsmarket.com/mission-values/animal-welfa...
- Retric 10y agoCollage tuition or CEO pay? CD's are older, but used to fit.
- DKnoll 10y agoNone of those 3 examples are commodities.
- Retric 10y agoI think that's arguable but how about: hardwood, crab meat, wolf pelts. Basically, anything with a finite supply and limited ability to mass produce.
- DKnoll 10y agoIt's not at all arguable, by definition each instance of a commodity is equivalent. Each CEO's value is not equivalent, nor is the music on any CD or each degree program available at every university.
- Retric 10y agoEvery cow is different that does not prevent them from being treated as a commodity. "In economics, a commodity is a marketable item produced to satisfy wants or needs. Often the item is fungible. Economic commodities comprise goods and services. https://en.wikipedia.org/wiki/Commodity https://en.wikipedia.org/wiki/Commodity Staff ex:Nurses are generally treated as a commodity in many economic models. Music/Books/Movies can also be treated like this. Sure, as a consumer I might pick A over B, but movie theaters don't individually price movies based on quality.
- DKnoll 10y agoThey can be treated as a commodity as they are graded on value. How would a commodity market work if each instance of the commodity had a different value? Both live steers, and their resulting leather, beef and other byproducts are sold based upon weight and/or grade. For example, 'a cow' is not a commodity... but a grade 3 live steer is. Movie theatres do not price films based upon quality, but the distributors certainly do (I managed a movie theatre). You cannot commoditise a movie ticket, each theatre provides different facility and presentation quality.
- Retric 10y agoSure, cattle auctions sell the animal for an individual price based on health, weight, body size etc. At the extreme end animals can sell for 150,000+ if they seem to have good DNA for breeding. http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty_queen_sold_in_sy.html http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty... Even if there just being butchered people make bids based on expected yields. This gets back to meat grades etc. However, animals are also sold in bulk without individual prices.