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There's a lot to say about the limits of the economics law that prices are determined by the market, which marginalist economics will defend as absolut truth. At the consumer level, prices are not so much about competition, and mostly about a expectations game based on what the product is supposed to cost, which may or may not have anything to do with the cost of production - marginal or average. For example, the French bread makers are raising their prices quickly with the noise of the food crisis, despite the fact that wheat only accounts for 10% of the cost of bread.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Sat May 31st, 2008 at 01:03:16 PM EST
[ Parent ]
For example, the French bread makers are raising their prices quickly with the noise of the food crisis, despite the fact that wheat only accounts for 10% of the cost of bread.

How much is accounted for by the power to heat the ovens?

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Sat May 31st, 2008 at 01:07:18 PM EST
[ Parent ]
No idea. That's not how they justify they price hikes to the public, anyway. And they are using EDF's electricity most of the time - has that risen that much ?

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Sat May 31st, 2008 at 01:15:17 PM EST
[ Parent ]
Another example : white flour is cheaper than whole flour, white bread cheaper than whole bread, (and even more than mixed-cereal bread), reversing a millenia-long trend...

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Sat May 31st, 2008 at 01:59:10 PM EST
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