Economics

How to explain the differences in prices of "homogeneous" goods among sellers.

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  1. Think about why similar goods cost different amounts.
    -- Is there some level of service or services involved?
    -- Is location a factor? (e.g., one seller is next to a major highway or railroad)
    -- Is financing typically involved?
    -- What about legal protections? (e.g., is one sellor in a juristiction where legal contracts are enforced)?

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