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That price tag only works if the firm has pricing power. In a very competitive market, it may find its pricing power isn’t strong enough, as other firms undercu
by sclarisse 4y ago
That price tag only works if the firm has pricing power. In a very competitive market, it may find its pricing power isn’t strong enough, as other firms undercut it.
- slg 4y ago>In a very competitive market... Yes, that was exactly the point that vasco was worrying about earlier in the thread since we don't yet know if it will be competitive market. I was refuting the point that price is dictated by marginal cost. It is dictated by the level of competition. If there is competition, we generally wouldn't have to worry about it only being available to billionaires.