[001]
RTanker
Current Version
Changed line(s) 3 from:
n
Because the fact that the movie as a whole fails economics doesn\'t mean that the example is invalid. If the wire and cable division is losing money, it cannot also be gaining market share, \'\'unless\'\' it is gaining that share by selling its products at a loss. In which case, it will start making money hand over fist once it has driven its last competitors from the stabilized market, and the current losses are just an investment in future profits. The buggy whip analogy doesn\'t hold at all, because there never was a publicly traded buggy-whip manufacturer; there were skilled leather-workers who made buggy whips along with a variety of other leather goods. There still are skilled leather workers who make a variety of leather goods, and they make decent livings; the market for leather goods still exists, and is going strong.
to:
Because the fact that the movie as a whole fails economics doesn\\\'t mean that the example is invalid. If the wire and cable division is losing money, it cannot also be gaining market share, \\\'\\\'unless\\\'\\\' it is gaining that share by selling its products at a loss. In which case, it will start making money hand over fist once it has driven its last competitors from the stabilized market, and the current losses are just an investment in future profits. The buggy whip analogy doesn\\\'t hold at all, because there never was a publicly traded buggy-whip manufacturer; there were skilled leather-workers who made buggy whips along with a variety of other leather goods. There still are skilled leather workers who make a variety of leather goods, and they make decent livings; the market for leather goods still exists, and is going strong.
Also cut this:
-->** Also, it\\\'s not necessary for a market sector to shrink away to nothing. There can still be a sizable market that is still too small to sustain the needs of an individual business.
Because while that\\\'s technically true, you\\\'re really just saying the same thing in a different way: the market has to be so small that it cannot sustain a business of the size in question, but since the wire-and-cable division in the movie appears to consist of one large factory in New England, the market really would have to shrink to almost nothing.
Also cut this:
-->** Also, it\\\'s not necessary for a market sector to shrink away to nothing. There can still be a sizable market that is still too small to sustain the needs of an individual business.
Because while that\\\'s technically true, you\\\'re really just saying the same thing in a different way: the market has to be so small that it cannot sustain a business of the size in question, but since the wire-and-cable division in the movie appears to consist of one large factory in New England, the market really would have to shrink to almost nothing.
