Howdy,

I've been shown how a lump-sum toilet maintenance can
raise the price of goods at a firm.  Here's another
serious question: assuming that cigarette companies
are (and have been) profit maximizers, can lump-sum
lawsuit settlement offer incentive for cigarette
companies to change their prices?  

I've heard and read many journalists and commentators
claim that cigarette companies can just raise prices
and make their money back, and I've always assumed
that if the companies COULD raise prices to make more
money, then they would have already done so.  Hence
they can't ameliorate the hit with a different pricing
policy.  Am I way off on that?  Please let me know.

Graciously your,
jsh

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"...for no one admits that he incurs an obligation to another merely because that 
other has done him no wrong."
-Machiavelli, Discourses on Livy, Discourse 16.

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