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Cost is determined by how much people are willing to pay, not by the price of their components. Of course knowing what goes into making one if these would help
by marcusbooster 17y ago
Cost is determined by how much people are willing to pay, not by the price of their components.
Of course knowing what goes into making one if these would help a competitor find a lower price point.
- handle 17y agoCost is actually determined by both the demand and the supply. This is because Amazon hypothetically takes into account their marginal revenue (which comes from demand) in relation to the cost of producing it, in figuring out a price point. Specifically, producing up to the point where MR = Cost. (Sorry for being an econ snob)
- eru 17y agoIn the "long run", yes. In the short run they may be unable to increase production.