3 ms·
"prices would be driven down to bankruptcy" Ample competition doesn't mean bankruptcy.
by jeffdavis 13y ago
"prices would be driven down to bankruptcy"
Ample competition doesn't mean bankruptcy.
- JulianMorrison 13y agoAmple competition for a mostly-inelastic price-sensitive demand drives prices right down to break-even (or below), forcing all the small operators out of the market and resulting in consolidation and cartelization.
- vdaniuk 13y agoI am studying economics atm, could you please provide a citation or an example of an industry that competition for mostly-inelastic price-sensitive demand drives prices down to break-even?