Quote:
Originally Posted by KSagal
I am afraid I do not agree with your explanation of capitalism. The potential reduced cost of building a segway, if labor costs, and up front research costs do not need to be figured in, may result in a reduced price, or it may not, as you predicted.
But if there is profit taking and price inflation (overly large margins between sale price and the manufacturing costs that they should be derived from) it would not be because of capitalism, but a simple result of a nitch market without enough competition, or without enough capitalism.
The way it really works is over time. If costs to produce are down, and sale price remains high, if there is a demand, then others will produce within that margin, and force the market to improve. The end result in a capitalist system will always result in more machine for the money.
What you spoke of is something else...
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Well....I think it can be sumed up in one word and there are hundreds more....
A great examle is "APPLE"....made by slave labor and reap huge proffits...