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Manufacturers price their product to maximize profits, regardless of the sunk costs. If they have thought pricing it at $100,000/year would have brought more p
by oldgradstudent 5y ago
Manufacturers price their product to maximize profits, regardless of the sunk costs.
If they have thought pricing it at $100,000/year would have brought more profits they would have priced it at $100K, and if they thought pricing it at $25,000/year would have brought more profits they would have priced it at $25K.