Whoa! Time out here. It was mplscyclone who said he/she has a degree in Econ, not trigger1.
trigger1 just has a truckload of extra econ credits that ISU wouldn't count towards a minor at the time, plus all those wonderful stat and research and evaluation courses that come with degrees. But no econ degree, far from an expert, and didn't even sleep in a Holiday Inn Express last night. :smile:
That's what I was trying to say. I'm sorry I didn't say it as simply as jdewaard. We can talk about pizza sellers per capita all we want, but we don't know if what that number means in terms of market saturation without knowing market demand.
IF the demand for pizza is larger in any given locality (when compared to market demand as a whole), THEN it is plausible that there COULD be a good reason for a higher per capita number of pizza sellers. Alternatively, we could compare the number of sellers per capita in markets with similar demand to infer whether Ames was saturated or not. It's not always how many sellers are in the market, it's about what the market will bear. And ultimately, when starting a new business, it's what the owners of that business believe the market will bear, according to whatever market research they've done.
I do have a degree in Econ and turned down several high profile Econ Grad School departments to work instead, so I don't really follow what you're trying to say here....
Everything I've posted is about marginal cost and utility. I'm just stating it implicity so I don't lose those who don't know the concepts.
trigger1 just has a truckload of extra econ credits that ISU wouldn't count towards a minor at the time, plus all those wonderful stat and research and evaluation courses that come with degrees. But no econ degree, far from an expert, and didn't even sleep in a Holiday Inn Express last night. :smile:
So why do you think the number of pizza restaurants per capita is so high in Iowa?
Then again, maybe the supply is bigger in Iowa, because the demand is bigger.
That's what I was trying to say. I'm sorry I didn't say it as simply as jdewaard. We can talk about pizza sellers per capita all we want, but we don't know if what that number means in terms of market saturation without knowing market demand.
IF the demand for pizza is larger in any given locality (when compared to market demand as a whole), THEN it is plausible that there COULD be a good reason for a higher per capita number of pizza sellers. Alternatively, we could compare the number of sellers per capita in markets with similar demand to infer whether Ames was saturated or not. It's not always how many sellers are in the market, it's about what the market will bear. And ultimately, when starting a new business, it's what the owners of that business believe the market will bear, according to whatever market research they've done.