- 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.


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.


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:

The Debating Room Post a Followup