Post all the economic pinhead gobbldegoop you want but it doesn't change the fact that producers are not retailers nor do they dictate retail prices....If you don't believe that go look at a new car sticker price with the "manufactured suggested retail price: VS "dealer mark up" price....
Post all the economic pinhead gobbldegoop you want but it doesn't change the fact that producers are not retailers
By definition retailers are producers as much as any business delivering a product to a purchaser, whether that purchaser is for final consumption, or merely purchasing to sell, or to incorporate material or service into its end product for sale they are all producers.
nor do they dictate retail prices....If you don't believe that go look at a new car sticker price with the "manufactured suggested retail price: VS "dealer mark up" price....
You are finally getting it. Retailers cannot dictate their own price in competitive markets; Which is precisely why all will lower prices in keeping up with competitors in any competitive market or cease to remain in business for lack of customers how buy what they need elsewhere for a lower price.
Lower overhead costs assure competitors will lower price to capture market optimizing their profitability. Any who holdout figuring to keep an imagined windfall, will pay a significant price in lost customers.