eli5 Why is the end product sugar cheaper than the base ingredients or waste products from it’s production?
In: Economics
All of what was said about the economics of undercutting prices. Also supposing we’re talking about sugar cane as opposed to beets(which also undercut the price of sugar since it can also be grown outside the tropics) there are secondary markets for the molasses and other byproducts for ingredients in things like rum, so why package and export your molasses for sale when you can send it down the road to be used by the truck load.
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