Cost is a determinant of retail price - necessarily
 

On Sat, 17 Jan 2015 21:22:39 -0500, Claude wrote:

Rudy Canoza pretended :
Bugster keeps saying, stupidly, that costs incurred by producers have
nothing to do with the determination of retail prices. That's false.

The supply function, i.e. the quantities that producers will supply at
various retail prices, of course is determined by the costs of factors of
production. If the minimal costs incurred by producers for a gallon of
gasoline are (say) $3.00, and no one will pay more than $2.90 for a gallon
of gas, then no gas will be supplied. Now, if there is some exogenous
change and some producers are able to produce gasoline for $2.00 per
gallon, and some consumers are still willing to pay $2.90 per gallon, then
gasoline will be produced.

Cost is not the sole determinant of retail price, but because it affects
the quantity supplied for any possible retail price, it necessarily helps
to determine what that retail price is.

Only someone who doesn't know any economics would be confused over this.
Someone like Bugster, for example.

As long as the American people are comfrotable making $5 an hour. I
don't see a problem. Got to keep up with Mexico in the race to the
bottom.

Everybody who is a Republican loved it when Mitt, during a debate that
included the Gov. of Texas, said "I'll bet you $10,000 on that!".

When was the last time you wagered $10,000?

Bout 28 yrs ago. Won too.



Surely Mitt was a "Man of the people".


"At the core of liberalism is the spoiled child,
miserable, as all spoiled children are, unsatisfied,
demanding, ill-disciplined, despotic and useless.
Liberalism is a philosophy of sniveling brats."
PJ O'Rourke