Quote:
Originally Posted by redpoint5
I expect supply of these minerals to be like the supply of oil. Price dictates the "effort" given towards mining the resource. If the price goes high enough, they will figure out ways to extract minerals in increasingly difficult areas.
There's no such thing as running out, only pricing that makes consumption cost prohibitive.
|
I've only had marketing 101.'What the market will bear' was the metric accepted universally back then for pricing.
It can have absolutely no connection to the actual cost of production,plus a 'reasonable' net profit.
Costs for extractive industries can grow to such a degree that it doesn't pay to bring it to the surface.