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> Producers seek the profit maximizing price, not the highest price (those aren’t the same). Is this true when you only have fixed amount of the commodity? Wou
by geertj 4y ago
> Producers seek the profit maximizing price, not the highest price (those aren’t the same).
Is this true when you only have fixed amount of the commodity? Wouldn’t players try to optimize the total NPV of all resources sold into the future?
- refurb 4y agoOil is not a fixed commodity. New reserves are discovered or become economically viable all the time.