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Clear cut logical explanation...(straight from my economic

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Posted by: robertmcphee at Mon Jan 10 21:17:52 2005   [ Email Message ] [ Show All Posts by robertmcphee ]  
   

book). Everything moves in waves...



It does not matter what product or service it is. The economic model shows us that when companies/breeders are making a large profit on a product/snakes it encourages other companies/breeders to reallocate their resources into producing these high profit products/snakes. When this happens more product/snakes are produced and to be competitive individual companies (usually those with lower overhead, such as us "small time breeders"sell their product at competitive below cost prices. After this occurs it drives the profit margin down. This in turn signals some breeders to get out of the specific product/snake to allocate their resources into higher profit products or new morphs. And finally when people or breeders decide to produce a different product it takes the pressure off of the previous product or morph and the price will again rise to start the whole cycle over.


   

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