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and when you can produce a commodity cheaply, more cheaply than the competition, you can influence prices by increasing and decreasing production. If you increase production, and thus decrease prices, to the point that your competition can't make a profit, you control the market.
And, if you're willing to operate at a loss for a time, you can run your competition out of business. When the chain store comes to town, it can afford to operate at a loss for a time, as the other stores make up the difference. The local can't do that, so it goes out of business. That's how the game is played.
Yeah, sounds like the free market and competition doing what it does best, allowing that which is most appealing to the consumer to survive.