BY RAMSI A. WOODCOCK — When the price of a good is too high, consumers who can afford to pay cost, including enough profit to make production worth the manufacturer’s while, but cannot pay enough to meet the high price, are forced to do without. Economics teaches that efficiency would increase if price were to fall to cost because at cost the manufacturer would still be glad to produce and consumers could now afford to purchase more of the good. Efficiency requires that where more for less is possible, more must be had for less. Read More
