[EMAIL PROTECTED] wrote:
> In a message dated 6/4/00 12:06:22 PM Eastern Daylight Time, [EMAIL PROTECTED]
> writes:
>
> << why should shoplifting cause a rise in prices? That would
> imply that before the rise in shoplifting the store was not charging
> as high a price as it could have. I' >>
>
> If there was significant loss due to pilferage, the store might have to
> charge more to nmake up for it and maintain its profit margin.
I guess I haven't found a clear way to state my question. I also
wanted a critique of the assumption behind my question. That
assumption is that at any given time a producer (or merchant)
is charging the highest price possible for the product. (As in
a break-even curve showing the point at which higher prices
cut sufficiently in to profits as to be self-defeating.) If this
assumption is true, then how can the seller raise the price
(which by our premise cannot be raised higher)?
To put it another way, I'd like to see more exploration (aimed
at the non-economist) of how prices get set.
Carrol
