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[quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal That's what businesses do, determine prices charged to their consumers based on their costs. [/quote] Nope. I take it you've never worked in a business where you had to compete? The selling price is based on market competition, not on your cost. [/quote] "Compete" is the key word there, alfalfa. If you had taken any economics classes, the first theory they teach you is the old "cost + 10%" rule of thumb which only applies to competitive markets. In monopolistic markets, it's more like "cost + the sky's the limit" because there is no competition there to keep you honest. If BNSF had any realistic competition in Montana, it's grain rates would have gone down in response to the efficiency adjustment, because that would have been the only way to maintain market share. Otherwise, if they had done what they did, but in a competitive environment, the other competitors would have simply undercut them and they would have lost market share. Why is this so hard for you to grasp? Everytime you post a reply, it seems you've totally spaced out the major differences between competitive and monopolistic markets. Next time you post a reply, keep the competitive vs monopolistic paradigm in mind.
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