[ExI] Prices/was Re: Food Production

painlord2k at libero.it painlord2k at libero.it
Thu Apr 23 23:58:35 UTC 2009

Il 23/04/2009 20.17, Dan ha scritto:
> --- On Thu, 4/23/09, painlord2k at libero.it<painlord2k at libero.it>
> wrote:
>> The problem with food prices in developed countries is that we
>> usually see only the final products costs. The cost of bread, in
>> Italy, is only 10% dependent to the cost of flour, the rest is
>> transportation, labour, capital goods, etc.
> Prices, where markets operate, depend on supply and demand.
> Governments often interfere with this by setting prices or setting
> quotas, especially with food, energy, and transportation.  (These, in
> effect, and to the extent of the interference, become "make believe"
> prices -- with the extreme example being comprehensive economic
> planning, where all prices are set by the government and have no
> relation to anything other than bureaucratic whim.)  Costs, per se,
> do not create prices.  If costs did create prices, then we would
> never expect to see someone selling below cost or anyone making the
> mistake of making something and later finding out the expect price
> was too low.

I wrote about costs, not prices.
They can sell bread at the price people want pay, here.
In fact, the price difference from North and South Italy is large.


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