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Not in competitive markets. Competition forces prices to marginal cost.
by colinmhayes 5y ago
Not in competitive markets. Competition forces prices to marginal cost.
- reducesuffering 5y agoIf that were true Pepsi and Coke would compete their profit margins to 0 for almost identical products. However they both make tens of billions of profit a year.
- colinmhayes 5y agoPepsi and coke have differentiated their products. The generic brand cola does have next to 0 profit margins, big soda can charge more because they have a monopoly on their brand.