Costs And Prices Both Move Down Over Time

In most markets outside of refining and mining, costs and prices move in the same direction – generally downward.

In the case of the Model T, this happened for nearly two decades. When prices exceed costs, we say the product is in Sustainable Disequilibrium.  When costs rise to and exceed prices, producers end the product line (Source, Abernathy, Product Dilemma, 1978, ISBN ISBN-13: 978-0801820816)

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