Bruno2
Member
Here is a link to what I found:http://www.midwayusa.com/find?sortb...ewcategorydimensionid=10037&statuses=In Stock
"Greatly overpriced?" Looks to me about like market pricing right now. Do you have any idea of their cost? Chances are that dealer costs are higher now, also. Producers cannot add plant, or shifts, and still produce at the same cost as they did before increasing output. In Econ 101 this is called "the law of diminishing marginal returns." Many people believe that as output increases, cost declines. But that is true only in select industries, and I am reasonably certain ammo production is not a "declining cost industry." So anyone who is waiting for ammo prices to fall to where they were before the current surge in demand is likely to never buy again.Midway can keep their greatly over priced ammunition. When this ammunition crisis is over i will still refuse to order anything from Midway.
In an environment where one can raise prices like we are in now your statement on diminishing returns does not apply."Greatly overpriced?" Looks to me about like market pricing right now. Do you have any idea of their cost? Chances are that dealer costs are higher now, also. Producers cannot add plant, or shifts, and still produce at the same cost as they did before increasing output. In Econ 101 this is called "the law of diminishing marginal returns." Many people believe that as output increases, cost declines. But that is true only in select industries, and I am reasonably certain ammo production is not a "declining cost industry." So anyone who is waiting for ammo prices to fall to where they were before the current surge in demand is likely to never buy again.
You are certainly correct that in short run, some of the price run up we've seen ("gouging") was driven entirely by demand, not by a rising marginal cost. But as that short run dissipates, and we see supply come on line that was produced at a higher cost, then diminishing returns will most certainly keep prices from falling back to their pre-panic lows. With the widespread availability of ammo now reported by gunbot (whatever its faults or limitations), I think we are now moving from beyond the short-term, and that the supply coming on line is being priced higher because of diminishing returns. Time will tell.In an environment where one can raise prices like we are in now your statement on diminishing returns does not apply.