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However, some of the goods are actually worth more than $10. It is
possible that the marginal costs of some goods worth more than $10 (ie.
the selling price) . So what is the reason for selling all the goods in the $10 shop at
such a low and standard price? Will they incur a loss?
Actually,
by selling all the goods at a standard price, the $10 shop can reduce the
cost of measuring the value of the goods and pricing them, ie. the
measurement cost.
Even though some of the products may have a value greater than $10, if the
total measurement cost saved is greater than the "loss", it is
still profitable for the shop to adopt a standard price!
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