4 ms·
I believe a better analogy would be that the 11th company comes and is willing to pay higher costs while still selling at the same price. That company gets the
by shard 6y ago
I believe a better analogy would be that the 11th company comes and is willing to pay higher costs while still selling at the same price. That company gets the best ingredients at that cost, the suppliers prefer to sell to that company, and denies it to the first 10 companies. The 11th company might even raise prices since their product is better. I don't think predatory pricing would apply in this situation.