Why is the Milk at the Back of the Store?

Because market structure shapes a firm’s behavior, a supermarket’s product placement relates to the monopolistic competition that characterizes its market.

The Cost of a Corn Flake

Telling us that corn prices are soaring, NPR asked, “Why Not Corn Flakes?” After all, approximately 13 ounces of an 18-ounce box of corn flakes is corn. The corn, though, only adds close to 4 cents to the price. So,…