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But how far down can that go before nobody is interested because there is no profit to be made? We already see how in the PC market the margins are razor thin.

But how far down can that go before nobody is interested because there is no profit to be made? We already see how in the PC market the margins are razor thin. The markup do not have to be 10s of percentages, but it has to be there or there is no point in being a merchant in the first place.

senko 10y ago
Right, there is such a point, and it's exactly how things are priced now. Bakeries already have to turn out some profit. I should clarify that this works for commodities but not for monopolies, eg Disney can jack up prices for new Star Wars movies all it wants, as SW fans don't really have a choice :) But for groceries, clothes, texh, etc, it does work