> But in a normally functioning market, production at 5 will rapidly ramp up to capture the excess profits to be made by selling at 8.

Not if your production is effectively random. If your factory produces a product at $5 this week, but next week your production is halved for a few days, someone else needs to step into that market who doesn't have a factory which produces like yours. You don't have any warehouses, and your product is consumed immediately. If there is not enough product for the market at any given 1 minute window of time Really Bad(tm) things happen to society.

You can build all the $5 factories you want, but when they tap into the same source of unreliable inputs then it really doesn't matter there is massively more cheap production than needed when the timing is fortuitous.

Once someone figures out how to build a different type of factory (battery storage) to buffer your good days of output into a warehouse for that $5 or less cost, then those $6 factories will simply go away over time as they can never sell their output on the open market.

The problem fixes itself.