re: #621 Obdicut

Do you have any reason to believe they would actually raise the price of anything? If people would still buy the same volume of fries at a nickel more, why didn’t they already price it at a nickel more?

Goods and services are sold at their optimal price point. If a company raises the price on something but loses volume, they often lose total profits. So, if raising the price of fries by a nickel had no negative effect on volume, why didn’t they already charge that price? And if it does have a negative effect on volume sold, why did they raise it and lower their total profits?

If this were a vacuum I would agree, but when Burger King is in competition it forces Mc’D’s to keep the price low. Now let’s throw in Wendy’s, Carl’s Jr. and my favorite JACK IN THE BOX (aawww yeah), then you can ensure the market keeping them close to honest just through competition.