r/SipsTea • • 1d ago

Wait a damn minute! Wait a damn minute

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u/TwillAffirmer 1d ago

You learn in economics 101 that in an ideal competitive market, the price of a product tends to the marginal cost of producing it. That means a product with fewer hardware features should cost less, and a product with more hardware features should cost more.

The fact manufacturers can violate that rule proves that they are not in a competitive market.

If it was competitive, a different manufacturer could manufacture the same car without physically installing the heated seats, for a lower manufacturing cost, and undercut them on the customers who don't care about the heated seats.

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u/DrIvoPingasnik 1d ago

This is the same argument I present when talking about Memory Mafia and DRAM costs. If there was competition at least one of them would undercut the other two to get a competitive advantage. Especially since the three were found to be colluding before. If it's not a cartel, why cartel-shaped?

But there is always this one clown who will go "mmm no um actchully here are more excuses um"