Comment by sshine
9 days ago
> Businesses charge their customers as much as they can
That's very imprecise.
There are multiple optima on the price/demand elasticity curve.
At the two ends: Few expensive items and many inexpensive items, Hetzner has consistently operated at low margins and massive volume.
Which means they charge customers as little as they can to get as many customers as possible.
You'll see that evident on any price comparison chart prior to these adjustments.
They're probably still cheaper than everyone else in spite of 3x'ing the price of some products.
Your overall point is true - but I'm unsure whether you are clarifying or trying to ackshualise.
And well actually, "price/demand elasticity curve" appears to be ambiguous word-salad (although a human mistake;)
I do appreciate your response: it makes me think about what I should have written. You are correct that my comment was rather unclear. Most of us misunderstand how businesses maximize profits. I find economics hard.
Yes, I just wanted to clarify that "businesses maximize profit", they don't necessarily maximize the unit price.
Thanks for squinting and finding sense in how I said it. It's been 12 years since I took an econ course.