Yeah, I'm not saying you can mindlessly produce random glyphs, list them for the lowest price, and expect to make a profit. I agree, some glyphs will never sell regardless of how low the price is. For example, you can be the only scribe who can make Glyph of Snake Trap and nobody will ever buy that. Dominating the Glyph of Snake Trap market isn't recommended. Even with high-demand glyphs such Glyph of Raise Dead, Horn of Winter, and other DK glyphs, you can't simply ignore the prices of the raw materials and undercut blindly. The add-on is simply a tool that you can use against your competors to make life easier for yourself.
All that economic mumble jumble is way over my head, so I won't respond to it =p. But from my experience with WoW auction house, you will unlikely make a sale if you have been undercut. If you list a product on the AH for 12 hours, and somebody comes along an hour later undercuting you by a small amount, your product will not likely sale for the remaining 11 hours. That is why I propose the add-on that can help you monitor your auctions for undercut. How often you use it, how much to undercut, and when to stop undercuting as it is no longer profitable is completely up to you.
You can argue that it may not worth the time to constantly checking on your auctions, and there's some truth to that. Without add-ons, it does take a lot of effort considering it takes 3 clicks to cancel an auction, 2 clicks to get the item from your mail box, and a bunch of clicks and keyboard presses to relist items one-by-one; however, With the right add-ons, it may not take as much time to as you think. I'm currently using 1-click cancel auctions, open-all mail box, mass auction with preset undercut value, and the add-on I'm proposing will help streamline most of the work. Without these add-ons, yes, it is definitely not worth the time spent considering you can probably make 200g/hour doing dailies. However, on my server the raw materials cost for a glyph is somewhere between 1g-5g and the final product sales for 20-40g, so to me it's worth the effort to check on my auctions every few hours.
Anyway, back to the Hello World tutoial =)