>>Economies of scale are powerful. A lot of companies dealing with products like these spend insane money on advertising, marketing and other mechanisms to sel

>>Economies of scale are powerful. A lot of companies dealing with products like these spend insane money on advertising, marketing and other mechanisms to sell their product. I think Pepsi can sell their drink at 1/10th price if they dropped the ads, sponsorships, marketing etc. And not to mention. People themselves perceive cheaper products as that of low quality.