2 ms·
When a competitive industry cuts a large expense out of their manufacturing process, they increase profit and make cheaper goods. That's why Amazon is so succes
by rthomas6 12y ago
When a competitive industry cuts a large expense out of their manufacturing process, they increase profit and make cheaper goods. That's why Amazon is so successful, because they used technology to trim costs. Amazon also has small profit margins; they make up for small profit margins with high volume, which they get because of their low prices and convenience.
To assume the size of the market is fed by the size of the population is to assume that human appetites for goods and services are finite. That is most definitely NOT the case. Some people want 100 fancy cars that they put in a garage or other ridiculous things. The size of the pie is what is available for consumption that people happen to want. Robots increase the size of the pie by making goods cheaper and more plentiful. That means people can consume more with the same amount of money... their money is worth more, so they're richer in real terms. For instance, if fancy cars were $10 each, you would be richer even though you have the same amount of money.