BEA tacitly admits widescale failure of markets

[lrellok]

4. nonono, i said price. Price!

I did not say that development costs where in the finished product itself, i said they where in the final sale PRICE. If the cost of developing a product is not covered by the profits, then the company goes out of business when they cannot repay the loans. The final price (material+labor+overhead+profit) must also cover the costs of development, and since what the GDP measures is the final price of all products, if markets are pricing efficiently then development costs must be included already.