When the market has minimal differentiation of goods, there will be a minimal number of firms providing those goods.
Post by twetch#622
When the market has massive differentiation of goods, but a single production structure can service all differentiations more or less equally, there will be a minimal number of firms providing those goods.
What the chain says
- Block
- 630 673
- Time
- 2020-04-15T05:36:43Z
- Signer
- 1Eyk15KEeYX9JwH8e98pqpX3kTUuY9d43C
- App
- twetch
- Type
- post
- Content type
- text/plain
- Name in tx
- twetch#622
Fields the transaction did not carry are omitted. Open the payload to see the bytes as stored.
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1Eyk15KEeYX9JwH8e98pqpX3kTUuY9d43C VerifiedReplies (2)
When the market has massive differentiation of goods, and specialized production structures are required to produce the goods in that market, then there will be at least as many firms as there are specialized production structures to service that market.
This is one of the most important lessons you can learn in economics if you are in business, whether as an entrepreneur or otherwise.
Do not ignore it, and do not underestimate its value.