PScollector.
Yes clearly, it is the rise of an extra, extremely profitable market for video game developers that video game retailers are going bankrupt.
Lets say I am a coconut farmer. I usually grow coconuts and sell them for $1 each. It costs me $0.50 in fertilizer per coconut I grow.
Now lets say a new market opens up, for coconut flavoured soft drink, which has such a low amount of coconut in it, I can make coconut drinks with 1 coconut, and sell each for $0.20, for a total revenue of $2.00
Now, lets imagine the price of fertiliser increases to $1.50.
I am now unable to make a profit selling whole coconuts, I am forced to rely on coconut drink to break even.
Is it the new coconut drink market that is bankrupting me, or the price of fertiliser?
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