Ben Thompson
speaker
42,103 appearances
120 recordings
2 series
first heard Sep 2024
last heard 21 Aug
Ben Thompson’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 39 in all, peaking in Mar 2026 with 5.
Appearances
In that world, you make money by having a superior cost structure.
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You can deliver the commodity at a lower price than everyone else.
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And the price for your commodity is not based on your cost structure.
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You can always outcompete everyone by offering a lower price.
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price.
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But if is assuming there's sufficient demand, the market clearing price is, you know, if you have a perfect s balance, assume you like the demand and supply can or can scale perfectly, the market clearing price is going to be the marginal cost to produce the commodity for the highest cost provider.
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So if it if is if making a widget and the widgets are are widely available, the the the price will be whoever it costs
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So
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Company XYZ $10 to make the widget, then all the widgets in the world are sold for $10.
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Now, again, there's lots of variables here.
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Supply and demand vary.
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There's elasticity on the price, how many people want to buy.
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But just if you're looking at that segment generally, the price if for a commodity where it's totally substitutable across companies, the market clearing price is going to be the cost structure for the marginal cost of the most expensive provider.
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Right.
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So if
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You have four providers.
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It costs provider one, ten dollars to make it, provider two, nine dollars to make it, provider three, eight dollars to make it, and provider four, seven dollars to make it.
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The company that has sustainable profits in the long run is
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The seven.
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That's right.
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Showing 3741–3760 of 42,103 · page 188 of 2106
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