3 ms·
> That seems pretty similar to standard oil pricing below market value to get its competitors out of business. Not quite. In economic terms, if: > Apple is ge
by reaperman 3y ago
> That seems pretty similar to standard oil pricing below market value to get its competitors out of business.
Not quite. In economic terms, if:
> Apple is getting more than 100% of the ad revenue Google earns from iPhones
This would mean that Google is pricing it not just "below market value", but also "below marginal cost of production". You can price below market value and still make a small profit. But in your hypothetical it's literally bleeding money.
I don't think it invalidates your point that "it could qualify as a monopolistic practice". But it's an important distinction because generally selling your goods/services below the supplier's marginal cost is inherently unsustainable.