Answer to Question #117504 in Microeconomics for Alexander Macheus

Question

typically, retail prices for clothing and shoes of a particular brand and style are the same regardless of size. yet, larger sizes use more raw material in their production are thus more costly to produce. why do you think this occurs? are firms that these products at a single price regardless of size engaging in price discrimination?

Posted about 2 hours ago

Answer 1

The retail prices are same regardless of the size because these retail sell products from companies which aim at producing quality products no matter the sizes. So the retails sell according to the quality of product not the sizes.

These firms do not practice price discrimination because the prices are fixed and do not shift