When the costs of production drop, the Coasian Floor drops.
- When the costs of production drop, the Coasian Floor drops.
- The Coasian Floor is the lower bound of where it makes sense for any company to execute on a business opportunity.
- That floor is not some fixed bar; it is an equilibrium based on the cost of inputs, the value to be created, etc.
- A disruptive drop in the cost of key inputs has the potential to be a massive change in the Coasian Floor.