[Principled]

So you aren't selling the same product.

I could be - consumer perception alone can allow differing prices. So the question remains, why a variation in price for the same product?

You usually won't find milk at this wide a price range at the same store or even the same general market.

You're wrong. I see it every time I go to Kroger.

If the business tries to sell the differentiated product for more than the market it will bear - they won't sell and they will be forced to reduce their price.

Right. Until they can't reduce it anymore - at what point will that be?????? When their revenues do not exceed their COSTS!

HELLO!!!?????

[Your Nightmare]

Right. Until they can't reduce it anymore - at what point will that be?????? When their revenues do not exceed their COSTS!

Don't you mean "costs plus income taxes"? Oh, right. There wouldn't be any taxes if they weren't making a profit. Does the price of this product the business is selling at cost have embedded corporate income taxes in it? (Your own logic is failing you.)

So what happens to a business that reduces their price "until they can't reduce it anymore" and still nobody is buying? HELLO!!!????? Their costs don't enter into the equation at this point. They sell for a loss and either try to cut costs or get out of the market.