LOURDES LEON STYLE

This does not necessarily mean he sets the price to maximize profit on each given article. He may sell dozens of kinds of articles, some of them at no profit or a loss, others at a very high margin. He is governed by rules of thumb, custom, general policy for the future, considerations of prestige, desire to keep good will. He may control raw materials, semi finished products, finished products; his operations may extend all the way to the consumer. He may take a profit at one point in this line and sacrifice it at another. Once a price structure is set, it has all sorts of interrelationships which are difficult to modify; nevertheless, it may have to be modified, both generally and in detail, because of technological changes, changes in cost, changes in demand. The kind of price that is set by the seller in the hope that it will have some degree of permanency but nevertheless will not be completely under his control, since conditions may force him to modify it, is not primarily either a competitive price or a monopoly price or any simple cross between the two.

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