Why Popcorn Costs So Much at the Movies: And Other Pricing Puzzles by Richard B. McKenzie

Author:Richard B. McKenzie [McKenzie, Richard B.]
Language: eng
Format: epub, mobi
Published: 2008-09-03T02:03:00+00:00

THE EVIDENCE ON THE RELATIVE PRICES OF PRINTERS AND THEIR INK CARTRIDGE

The line of argument developed in the previous section leads to two important conclusions. First, the total cost of using a printer will tend to fall with the durability and price of the printer. Available studies tend to confirm that conclusion. In one such comparative study, PC World magazine found that the total cost of use for 3,000 printed pages for a $5o Lexmark Z6o5 color printer was $517. A much more durable $180 Hewlett-Packard 6122 color printer had, for the same number of printed pages, a total-use cost of $393, nearly a quarter less than the Lexmark printer.6

Second, the ratio of the printer price to the ink cartridge price can be expected to rise with the durability and price of the printer. Tables i and 2 show the prices for a selection of Dell and H-P printers and ink cartridges, as reported on the companies' respective web sites in March 2007, and provide some (but hardly perfect) confirmation of expectations developed in the preceding section. The durability of the printers in each table designed for businesses is generally greater than the durability of the printers designed for home offices. The durability of the printers listed for each category (home and business) rises with their model numbers. The printer prices also rise with the model number and durability of the printers for both companies.

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