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Why does an "X" cost "$Y+"? Because that's the price the market will bear for X. Cost has nothing to do with it. If I could sell you a kettle for $100,000 that
by stefan_kendall 13y ago
Why does an "X" cost "$Y+"?
Because that's the price the market will bear for X. Cost has nothing to do with it. If I could sell you a kettle for $100,000 that cost me $100 to build, I would absolutely do it.
- thatthatis 13y agoHe implicitly assumes (and I think correctly so) an efficient competitive market with zero economic profits.