logoalt Hacker News

energy123yesterday at 11:10 PM1 replyview on HN

Why the 120% price difference between China and South America?


Replies

vel0cityyesterday at 11:16 PM

Different government subsidies, different manufacturing costs, different regulatory requirements, and different markets have different market competition.

Think about this concept. It costs you $1 to make a widget. It costs your competitors $1.25 to make a similar widget. They sell theirs for $5. Do you sell yours for $1.50 or $4.75? Obviously, other things could be in play for the market for widgets, but if you could sell all your widgets for $4.75 wouldn't you do that?

If the cheapest car in the US is about $20k and is a complete POS, why would you sell your better car for $10k when you could still sell it for $22k and still sell just about all the ones you build?

show 2 replies