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If every supplier in a market has the same overhead, it will pass through to customers, because suppliers cannot compete to eliminate it. See also: high prices

If every supplier in a market has the same overhead, it will pass through to customers, because suppliers cannot compete to eliminate it. See also: high prices in destination shopping. The landlord sets the rent and all stores have to pay the rent, so all stores will have the same high prices no matter how stiff the competition between them.

chrisseaton 7y ago
But the high debt is why they want to command a high fee, not why they are able to. They’re able to due to restricted supply.
- johnkpaul 7y ago
  Or perfectly inelastic demand. No one weighs the costs of life or death
- stale2002 7y ago
  Yes, it is due to restricted supply. But the reason why restricted supply exists, is partially because of the high debt.