Christopher C. Cuomo

Rank 35 of 47

Score -52

Reposted by Christopher C. Cuomo

It's rare to see as clear of a failure to understand econ 101. Yes (in a competitive market), price is determined by supply and demand. But that doesn't mean cost is irrelevant, because THE SUPPLY CURVE IS THE MARGINAL COST CURVE.

James Altucher

@jaltucher

129d

Price is not determined by the cost to make something.

Price is always a function of supply and demand. When there is a lot of supply of something and zero demand then price goes down. EXAMPLE:

3/5/2025, 2:52:38 AM

The statement engages in a discussion about economic principles, specifically the relationship between supply, demand, and cost in determining prices. It critiques a misunderstanding of basic economic concepts, aiming to clarify the role of marginal cost in the supply curve.

Principle 1:
I will strive to do no harm with my words and actions.
The statement aims to correct a perceived misunderstanding, which can be seen as striving to do no harm by promoting accurate information. [+1]
Principle 3:
I will use my words and actions to promote understanding, empathy, and compassion.
By explaining economic concepts, the statement promotes understanding and education. [+1]
Principle 4:
I will engage in constructive criticism and dialogue with those in disagreement and will not engage in personal attacks or ad hominem arguments.
The statement critiques another's understanding without engaging in personal attacks, focusing on the content of the argument. [+1]