Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: You Dirty Rats

One fact of business life is, if someone offers you more money for the same product, everyone's price goes up. The product doesn't get any better but the margin improves.


59 posted on 07/31/2006 7:36:34 AM PDT by Eric in the Ozarks (BTUs are my Beat.)
[ Post Reply | Private Reply | To 57 | View Replies ]


To: Eric in the Ozarks
One fact of business life is, if someone offers you more money for the same product, everyone's price goes up.

Unusual business, that -- in most businesses I am aware of, customers these days keep demanding lower prices, not offering higher ones. In fact, when there is a temporary supply problem it is common for a business to put customers on allocation instead of raising prices, lest they find alternatives and stick with them after the supply is fixed.

But to take your point -- OK, prices go up for the industry. That raises profits, thereby attracting more investment. If there is money to be made, people are VERY creative in figuring out how to tap into the motherlode. Hence the explosion in wasteful investment in health and education. People get MRIs for a hangnail.

62 posted on 07/31/2006 7:46:51 AM PDT by You Dirty Rats (I Love Free Republic!!!)
[ Post Reply | Private Reply | To 59 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson