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by mitthrowaway2 1136 days ago
How is the calculation you're describing different than the calculation of optimal pricing for a monopoly?
1 comments

It's similar, but when the price of the product is closer to the willingness to pay, market share becomes important again.

It's also has an impact on what products get made, and investment in r&d. If you fall behind the competition in terms of quality, you loose marketshare.