Economics of oversupply revisitedThere's this hill, somewhere :-)
It's farmed for apples by two farmers:
1 North slope, poor soil, rains come in from the south, cold winds from the north, hired labor.
2 South slope, good soil, perfect sunshine, large family and all work the farm cheaply.
1 Produces, sour-, bug ridden, small stained apples, but plenty of them although a bit expensive.
2 Produces large, sweet, juicy and clean shiny apples at low cost, but a bit less in quantity.
Of course, dear NPV, farmer 2 will fail as farmer one produces all the apples the factory needs for juicing / cidering.
Of course the good, cheap, better apples from #2 will be left to rot as people never eat apples for the joy of eating an apple and, besides that, they are not expensive enough.
Yeah man, NPV, no way you can be wrong. LOL
Have fun.