That seems fine. So, hospitals distribute free baby formula. Totally free, right? No strings, no limitations, and out of the sheer goodness of their hearts there will be formula milk distributed forever to all who want it, no charge and no restrictions?
No?
So, explain again why formula milk might be distributed for free on a limited basis. Not at all like giving, say, an introductory line of marching powder, or a free shot of special E?
it's called predatory pricing: the temporary distribution of a product below cost, or at least below general cost, to drive a competitor out of business and so achieve a local monopoly of supply. A refinement is to simply leveeage bulk product costs to equip a local store with goods at 10% below the competitive local prices.... until other outles are deceased. Of course, no company would ever exploit this situation for extra profits? Indeed they'd never even notice, would they? |