3 ms·
> only the producers who could scale without "too much" cost would scale. > the rise in price incentivises the market to produce more of the product / incentivi
by EdgarVerona 7y ago
> only the producers who could scale without "too much" cost would scale.
> the rise in price incentivises the market to produce more of the product / incentivises more producers to enter the market
It sounds like this is built under an assumption that there is extra capacity available without significant or permanent costs. I don't know the level of capacity at which they are currently producing, but rationally speaking the mere fact that the shelves are empty due to demand would mean that intelligent companies would already have ramped up that capacity in response. So if the shelves remain empty, is that a sign that we've reached the level of demand where the cost of additional supply becomes more expensive/ongoing?