3 ms·
> The price of a product in a competitive market tends to its marginal cost Long run marginal cost. Which will be higher than the cost per unit. You can’t s
by mr_toad 6y ago
> The price of a product in a competitive market tends to its marginal cost
Long run marginal cost. Which will be higher than the cost per unit. You can’t sustain a market when you can’t cover fixed costs. Just look at what happened to Detroit.
- cromwellian 6y agoI already showed they cover fixed costs with a mere 5% of revenue and 12% of gross profit (note their reported gross profits actually already removed the fixed costs)