- Capitalism and Alternatives -

For the LAST time...(better)

Posted by: Stoller on November 19, 1999 at 14:42:22:

In Reply to: it is the consumer who determines value. posted by DonS on November 19, 1999 at 10:29:51:

Stoller: That candy-bar is NOT worth $100 when some isolated crank buys it at that price.
: Don: If there are a sufficient number of "cranks" willing to spend $100 for a candy bar, candy bars *would* sell for $100. Because it is the consumer who determines value.
OK.
Say the production of candy-bars is 30¢ constant,30¢ variable, leaving 40¢ surplus.
Then the manufacturer determines how many cranks are willing to overpay.
Great.
Now the manufacturer's competition sells them for $90---which the crank, who's getting low on cash, readily purchases.
Then the first candy-bar manufacturer responds by charging only $80.
And so on.
When will the price-war stop?
Whereelse can it stop?
It stops at the point where production costs leave NOTHING for profit.
No matter what ANY CUSTOMER thinks.
Get serious you guys.

Follow Ups:

why lower your price to undercut the competition DonS USA November 23 1999 (13)
- Again Stoller November 24 1999 (12)
  - No price war DonS USA November 24 1999 (11)
    - Yaaawn...(better) Stoller November 24 1999 (9)
      - if demand is sufficiently high, there is no point in engaging in a price war. DonS USA November 25 1999 (8)
        
        ??? Stoller November 26 1999 (7)
        
        competition only comes into play if demand is insufficient for the needs of all the producers. DonS USA November 30 1999 (6)
        
        'Demand' - wih correct links Stoller November 30 1999 (4)
        
        I disagree. DonS USA December 01 1999 (3)
        
        That's what this whole forum is about Stoller December 01 1999 (2)
        
        Addition Stoller December 02 1999 (0)
        
        most 'capitalists' are pragmatic people who are not much interested in free market theory. DonS USA December 02 1999 (0)
        
        'Demand' Stoller November 30 1999 (0)
    - Yaaawn... Stoller November 24 1999 (0)
and what does that tell you.... Gee si November 19 1999 (14)
- That you never read Capital perhaps? Stoller November 20 1999 (13)
  - burn the heretics Gee si November 22 1999 (8)
    - You're being evasive Stoller November 22 1999 (7)
      - foolish Gee si November 22 1999 (6)
        
        No kidding Stoller November 23 1999 (5)
        
        break it down Gee si November 23 1999 (4)
        
        These are the breaks (calling McSpot) Stoller November 23 1999 (3)
        
        Complicated theories DonS USA November 24 1999 (2)
        
        ...and meager minds Stoller November 24 1999 (1)
        
        By parsimony one rejects the more complicated theory. DonS USA November 25 1999 (0)
  - Those ignorant proles are going to need a priest Stuart Gort USA November 21 1999 (3)
    - anyone who takes the economic ramblings of a loser like Marx seriously DonS USA November 24 1999 (2)
      - at least your not trying to pretend your argument is based on reason lark November 24 1999 (1)
        
        When someone calls me DonS USA November 25 1999 (0)