Because the parasite is drawing less blood from the host. While various pressures make seller go near the tipping point of economical viability usually the sales are a little past that. Ie there is some amount of the price could have been lower and the total amount of sales would have been the same. If customers would be offered this price they would prefer it to the original price. However such a venture will make 0 profit. In economic lecture i saw this pharsed in the way that there is some X amount of profit the company wants to make if it’s profits will fall to x-1 it will voluntarily go out of business or change to a more lucrative business “no one will bother to do it as a charity”. Usually this “bookkeeping profit” is actually included in the production costs so that 0 profit means the point where the firm still stays in business.
The idea of competition comes that if X is the painthreshold for you and the current market price is X+20 you can sell at X+10 to be +10 on the confortable side. Ie the most modest greed will win.
Because the parasite is drawing less blood from the host. While various pressures make seller go near the tipping point of economical viability usually the sales are a little past that. Ie there is some amount of the price could have been lower and the total amount of sales would have been the same. If customers would be offered this price they would prefer it to the original price. However such a venture will make 0 profit. In economic lecture i saw this pharsed in the way that there is some X amount of profit the company wants to make if it’s profits will fall to x-1 it will voluntarily go out of business or change to a more lucrative business “no one will bother to do it as a charity”. Usually this “bookkeeping profit” is actually included in the production costs so that 0 profit means the point where the firm still stays in business.
The idea of competition comes that if X is the painthreshold for you and the current market price is X+20 you can sell at X+10 to be +10 on the confortable side. Ie the most modest greed will win.