If you want to delve into pricing strategies, you may want to check the article below.

Link of the day.
 If you want to get into the ring about pricing strategies. Here.

Link of the day.
 This is another right about Apples. Here.

illustration

Copyright© Schmied Enterprises LLC, 2024.

Would you prefer to buy light red cherries from a seller with competitive vendors, or dark red cherries from a monopolistic seller enjoying 20% margins?

Historically, the approach suggests choosing the monopolist, as they utilize 80% of resources, which may be better for the economy and the environment.

I believe that the 2010s, characterized by a long period of quantitative easing, significantly changed the economic landscape, creating many wealthy individuals.

I come from a public school background, where I was taught to improve the entire system. The equity investors in the monopoly enjoy a 25% return on their invested capital.

In an era of quantitative easing, the monopoly might accumulate profits in an account in the Republic of Ireland, benefiting from deferred income taxes. In the short run, resource use will be lower. The monopolist may invest in artificial intelligence research a decade later, potentially negating the resource advantages of that choice.

In a period of quantitative tightening, money becomes scarce, and investors will need funds for consumption quickly. They are likely to use it for retirement income, spending on travel, or purchasing airlifted insulin from India potentially negating the resource advantages of this choice.

In both scenarios, resource use depends on the decisions of investors. Personally, I would probably choose half dark and half light red cherries for the same price. My purchasing power will ensure that the upstream monopolist cannot monopolize downstream, preventing price increases next year.

A better question is what to do if the competitive seller has costs of 95 cents next year. Would you still buy from the monopolist, assuming it has a better climate impact?

The public response is to choose the lower prices, even if the monopoly uses fewer resources. Opting for higher prices could eliminate your cash flows, leading to the disappearance of your company.

Even the 401(k) plans of successful companies suggest diversifying retirement savings, as employees may not want to invest all their money in the employer's shares. Aggregate 401(k) fund managers have the power to shift the competitive landscape from a high-stakes game of water polo to the fair, lane divided competition of 100-meter freestyle swimming.

Also, keeping your options gives you the momentum. Options preserve your buying power longer.