this post was submitted on 26 Jun 2025
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Even in the best case s scenario - bakeries compete making uniform quality products without involving political shenanigans - the price of bread is independent of the cost of production.
What you're looking for as a business is the "clearing price", which is the price at which your (sales * price) generates the maximum revenue.
New capital that lowers per unit cost does not change the price. It raises profit margins. Only when multiple vendors in competition have access to this capital does the clearing price fall.