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This does not even consider basic supply and demand. You can sell 100 widgets for $1 a piece, or 20 widgets for $10 a piece. You're going sell 20 widgets. In re
by TangoTrotFox 8y ago
This does not even consider basic supply and demand. You can sell 100 widgets for $1 a piece, or 20 widgets for $10 a piece. You're going sell 20 widgets. In real life Apple is the most obvious example here. They choose to sell their products at an extremely high markup which limits the number that are purchased, but thanks to that markup they end up making far more profit per item than most other comparable companies.
- pjc50 8y agoMilk is not an Apple. It's a commodity. Individual producers have no pricing power. Try to sell milk at $10 a liter and you sell none, because you're undercut by someone selling an identical product for less.