In your economics 101 textbook, certainly. But this is a significant part of why, absent import costs, European wines are cheaper than American wines at the bottom end of the price scale.
At the upper end it’s to do more with demand, so American wine growing regions have to develop an international reputation. Napa has, and places like Willamette are on their way.
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Notes -
Fixed costs don't change prices for profit maximizing businesses.
If they could make more profit charging more (or less), they'd charge more (or less).
In your economics 101 textbook, certainly. But this is a significant part of why, absent import costs, European wines are cheaper than American wines at the bottom end of the price scale.
At the upper end it’s to do more with demand, so American wine growing regions have to develop an international reputation. Napa has, and places like Willamette are on their way.
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