Translation: We’d be performing price inceases because we’ve determined the makret would bear it. This would be under the guise of [insert reason here].
Remember kids, profit maximizing firms don’t set prices according to their costs plus some profit margin. Prices are set to whatever the market would bear where the price * volume yields the highest revenue. When the market can bear very low profit margin, there is a correlation between costs and prices. Amazon isn’t a low margin operation.
Translation: We’d be performing price inceases because we’ve determined the makret would bear it. This would be under the guise of [insert reason here].
Remember kids, profit maximizing firms don’t set prices according to their costs plus some profit margin. Prices are set to whatever the market would bear where the price * volume yields the highest revenue. When the market can bear very low profit margin, there is a correlation between costs and prices. Amazon isn’t a low margin operation.