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 ===== "...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. __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.yahoo.com