• Ignisnex@lemmy.world
    link
    fedilink
    English
    arrow-up
    44
    ·
    1 year ago

    If people could pay double, things would cost double. Quality likely wouldn’t change.

      • Skiptrace@lemmy.one
        link
        fedilink
        arrow-up
        20
        ·
        1 year ago

        It’s called Free Market Capitalism. If the market can bear double the cost, the prices will rise to meet the level the market can bear.

        • jimbolauski@lemmy.world
          link
          fedilink
          arrow-up
          5
          ·
          1 year ago

          I see you got as far as supply and demand in your economics course before you zoned out. Competition specifically 3 competitors has been shown to apply sufficient pressure to stop price gouging. Airlines profit margins are at 8% which indicates sufficient completion.

          • Rodeo@lemmy.ca
            link
            fedilink
            arrow-up
            7
            ·
            1 year ago

            Too bad the regulations to support competition and disband oligarchies is so pathetically weak.

            Incidentally, why is it that every gas station in town can fix their prices together? Isn’t price fixing supposed to be illegal?

            There is not sufficient regulation to support the hypothesis of competition.

            • jimbolauski@lemmy.world
              link
              fedilink
              arrow-up
              1
              ·
              1 year ago

              Not sure if you are being sarcastic and think 8% is huge or you are being sincere and think 8% is poor. 8% is average compared to other industries.

              • Skiptrace@lemmy.one
                link
                fedilink
                arrow-up
                1
                ·
                1 year ago

                8% is tiny. Like, microscopic.

                In my industry, if your Profit Margin per ticket is less than 70% for a long enough time, your gonna go under. (Automotive Repair)

                • jimbolauski@lemmy.world
                  link
                  fedilink
                  arrow-up
                  3
                  ·
                  1 year ago

                  I doubt your profit margin per ticket includes over head costs. Is sounds like it’s mostly direct costs that are included. If your shop truly had a 70% profit margin the owner would be loaded, for every 100k you charge customers they would be taking home 70k in profit.

        • LufyCZ@lemmy.world
          link
          fedilink
          arrow-up
          5
          ·
          1 year ago

          And free market capitalism also supports competition - if there’s a company that can do it for less, there will be, because people will spend less if they can.

          It works both ways mate

      • some_guy@lemmy.sdf.org
        link
        fedilink
        arrow-up
        9
        ·
        1 year ago

        How long have you been alive? If you’ve been an adult for ten or more years and haven’t noticed the degradation in quality of services, I don’t know what to tell you.