David Pogue writes, When you buy a cellphone — an iPhone or Android phone, let’s say — you pay $200. Now, the real price for that sophisticated piece of electronics is around $600.
Because of the subsidies, we actually don't know what the real price of that piece of electronics is. There's a very good chance the subsidies themselves are there to increase the price out the door of that piece of electronics.
In a no subsidy free market, who knows, while MSRP of a cellphone might be $600, the real price might turn out to be $450 or so.
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[ 4.7 ms ] story [ 14.3 ms ] threadBecause of the subsidies, we actually don't know what the real price of that piece of electronics is. There's a very good chance the subsidies themselves are there to increase the price out the door of that piece of electronics.
In a no subsidy free market, who knows, while MSRP of a cellphone might be $600, the real price might turn out to be $450 or so.
Useful disruptions are less likely when we have too few companies in a given market.
Note: OfficeMax and Office Depot are trying to merge.