12-29-2008, 03:12 AM
You guys must have read different Econ 101 textbooks than I did.
And what guys are you referring to? Don't pat yourself on the back too soon.
That doesn't mean, of course that the market will always bear that price.
Of course it doesn't. And what the market will bear depends on several factors.
People often accept the cost of production as a reasonable cost of doing business. Knowing the cost of production can and sometimes *does* affect the buyer's perception of value and purchasing decision.
The seller then has to decide if that decision on the part of the buyer is significant enough to affect the asking price, or does it need to be adjusted.
Several factors can sway the balance of sellerss and purchasers' power.
Knowledge can be power in its own right.
All part of Econ 101.
And what guys are you referring to? Don't pat yourself on the back too soon.
That doesn't mean, of course that the market will always bear that price.
Of course it doesn't. And what the market will bear depends on several factors.
People often accept the cost of production as a reasonable cost of doing business. Knowing the cost of production can and sometimes *does* affect the buyer's perception of value and purchasing decision.
The seller then has to decide if that decision on the part of the buyer is significant enough to affect the asking price, or does it need to be adjusted.
Several factors can sway the balance of sellerss and purchasers' power.
Knowledge can be power in its own right.
All part of Econ 101.