You've cherry-picked 2 outlying low-margin, high-velocity products where there is a race to the bottom. I counter your gas with smartphones, where Apple and Samsung are ratcheting up the price year over year, while competitors like LG are bowed out. Why couldn't LG compete at lower prices, and chose to exit the smartphone market entirely?
How does your perfect competition theory explain why tuition prices have been going up over 5+ decades, vastly exceeding inflation?
> Why couldn't LG compete at lower prices, and chose to exit the smartphone market entirely?
Because Apple keeps making the phone better.
> How does your perfect competition theory explain why tuition prices have been going up over 5+ decades, vastly exceeding inflation?
I didn't espouse a "perfect competition" theory. That's your strawman. Anyhow, tuition prices have gone up because the government provides rivers of cash to prospective students. The pool of students thus has gone up drastically, and because of limited supply of colleges, and vast demand by students with fistfuls of cash (and little sense), the tuition went up. A lot.
