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"The price for something is measurably higher if the manufacturer maintains a surplus of components with an inelastic supply" is not really true though. Once t
by falcolas 4y ago
"The price for something is measurably higher if the manufacturer maintains a surplus of components with an inelastic supply" is not really true though.
Once the initial investment in creating a stock of those items is done, there's only a minimal storage cost. For things like chips for cars, that storage cost is probably measured in double-digit dollars a year to create billions of dollars worth of vehicles.
Is investing in a business to smooth over supply chain problems really so taboo to a modern businessman?