government incentives help to reduce the externalities
You seem to think that two companies selling product A will rather sell 50 for $10 per unit profit than 100 for $9 per unit profit because it's easier.
> You seem to think that two companies selling product A will rather sell 50 for $10 per unit profit than 100 for $9 per unit profit because it's easier.
If the numbers are closer, then that's exactly what happens.
Would you rather sell 50 units for $19 per unit or 100 for $10 per unit? Option 1 gives you way less overhead and headache with cheap-o customers.
You seem to think that two companies selling product A will rather sell 50 for $10 per unit profit than 100 for $9 per unit profit because it's easier.
I mean, it's a view, sure.