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To: YankeeReb

Yes - corporations just pass their costs on to us.


4 posted on 06/28/2010 7:57:04 AM PDT by plain talk
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To: plain talk

This line of thinking is wrong, here’s why:

Corporations attempt to maximize profit, meaning they charge the MOST they can get for a product. To maintain a specified margin when the costs to make that product increase you assume the price of the product would go up, but if they could still sell that product at that higher price, why would they not have done it originally, since they are bound to maximize profit?


5 posted on 06/28/2010 8:06:27 AM PDT by Thurston_Howell_III (Ahoy polloi... where did you come from, a scotch ad?)
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