u/Kalirren

Is there a term for the state of a market for a processed good and a raw material where the process cost is so low that their price is the same because the option to make other things with the raw material is of the same value as the value added by processing the good?

An example of this: sliced cheese vs. block cheese at Wal-Mart often have exactly the same price per pound. You can make sliced cheese from block cheese by slicing it, but by doing so you lose the option of doing anything else with it instead (e.g. grating it, eating it as sticks or cubes).

Is there a term for the state of a market for a processed good and a raw material where the process cost is so low that their price is the same because the option to make other things with the raw material is of the same value as the value added by processing the good?

An example of this: sliced cheese vs. block cheese at Wal-Mart often have exactly the same price per pound. You can make sliced cheese from block cheese by slicing it, but by doing so you lose the option of doing anything else with it instead (e.g. grating it, eating it as sticks or cubes).