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That's the point, if a person sets out to mass produce |
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| Posted by |
HighPsi (NorCal) on June 18, 2012 at 5:25 PM |
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This message has been viewed 951 times. |
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| In Reply To |
That is an option, but will be bad for the few who buy the posted by CmyZ on June 18, 2012 at 02:56 PM |
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something, either from savings or a debenture, the price represents quite a few factors, which include r&d, oppotunity cost(s), projections for breakeven, not to mention the standard start-up costs. If a products lifecycle is severly diminshed because of illegal competition, which unfairly lowers the cost for barriers to entry, the breakeven pricing will reflect this, and for a products' cost to be recouped in a shorter time period, pricing will have to be increased as well. This adds a question prior to starting the project, "will there be enough demand at that price to warrant production?" Needless to say, if there is a small potential for profits to be obtained, and even smaller when a company has no legal recource from unscrupulous companies, what is the incentive to innovate?
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