4 ms·
> As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists po
by q-big 4y ago
> As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists pour in undoing the entire thing, lest money be left on the table.
The problem is that if you sell things insanely cheaply, the demand increases a lot, i.e. not everybody who would like to get one, is able to - this is called scarcity.
There exist two approaches to this problem (mixed solutions between these two approaches are also possible):
1. increase the production rate such that there is sufficient supply for the given demand - this is the solution that you, I think, wish.
2. increase the price of the product and be happy that producing cheaply and selling more expensively makes you a lot of money
In other words: the lesson that you miss in your post is that it does not suffice to engineer a package so cheap that anyone can afford it, but you also have to ensure that you have sufficient production capacity that you can fill the demand which comes from this cheap price.
- salawat 4y ago