3 ms·
This person misunderstands how prices are set. When there is a shortage of something, buyers will start offering more money to get that limited supply, which m
by kdamica 4y ago
This person misunderstands how prices are set.
When there is a shortage of something, buyers will start offering more money to get that limited supply, which means that those who have the supply will make more per unit than before.
The thing to understand is that at some level, almost all prices are set by an auction. And this is especially true for commodities.
Edit: have been looking around, and the few numbers I’ve found show that Cal Maine has about a 20% share of the US egg market. So not a hugely competitive market but certainly not a monopoly.
- myshpa 4y agoOligopoly then? https://www.eggindustry-digital.com/eggindustry/january_2022/MobilePagedArticle.action?articleId=1759387&app=false#articleId1759387 https://www.eggindustry-digital.com/eggindustry/january_2022... "the top 10 U.S. egg producers housed 52.6% of the total U.S. table egg laying flock in this year’s survey"
- kdamica 4y agoMaybe but the author makes it sound like this company controls the entire egg market and has full pricing power, which is not true.
- steego 4y agoCollusion and price fixing in the food industry is not without precedence. https://en.m.wikipedia.org/wiki/Lysine_price-fixing_conspiracy https://en.m.wikipedia.org/wiki/Lysine_price-fixing_conspira...