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deleted927028
No, no one here thinks that.
We think that if you have 2 companies selling comparable products, company A can charge $400 all they want but if company B charges $50 then company A either has to lower their price or go out of business.
Honest question: have you taken even a basic economics class before?
I did not formally study economics but have learned a lot. The scenario you are giving will work only when the consumer is not forced to buy. When he is forced to buy , both companies won’t compete with each other but come together to keep the price at $400. We have so many health insurance companies and drug companies in USA, why the competition doesn’t lower the premiums and drug cost compared to other countries? Please explain. Because they gouge the consumers collectively.