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Are you being sarcastic? The food industry is generally used as the textbook example for the market most resembling perfect competition which as defined straig
by mrep 5y ago
Are you being sarcastic? The food industry is generally used as the textbook example for the market most resembling perfect competition which as defined straight from wikipedia: "Such markets are allocatively efficient, as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR). In perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost (P = MC)".
https://en.wikipedia.org/wiki/Perfect_competition https://en.wikipedia.org/wiki/Perfect_competition
- cycomanic 5y agoThe restaurant industry certainly is not a market resembling perfect competition, I mean we can just look at the vastly varying prices between restaurants, which certainly can't be attributed to cost. Even if we talk about the food industry more generally, I mean there's like 3 or 4 different brands of milk in my supermarket which vary in price by 100% I hardly doubt that their cost varies by that much.