mrttao
Well-known member
there is not a linear corrolation between number of factory employees and number of goods produced in that factory. in fact the corrolation is absolutely minimal in factories that are not under staffed / sweatshops. Non-sweatshops have the produced item made almost entirely by machines. an understaffed factory might not have people to operate the machines. but once all the machines are operating, the machines determine the production quantity.Who the fuck taught you that?! How in the name of Milton Friedman could higher supply cause higher costs?
also, a sufficiently large increase in supply can lead to higher costs in the long term by causing a short term drop in price that kills competitors.
allowing the surving producers to set a higher price due to lack of competition.
whether it is direct competitors that produce the same thing, or indirect competitors that produce a close enough equivalent product. (eg: swapping from cotton to silk. or from beef to pork. or from gasoline to diesel)
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