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Tobacco companies know when nicotine is rapidly absorbed in sufficient quantities, the result is substantial profit from the sale of addictive products

Two price points matter here, and they're not the same: Revenue-maximizing: Optimizes for total revenue, accepting some volume loss in exchange for higher per-unit returns Margin-maximizing: Factors in cost structure and optimizes for net profitability Knowing which one you're targeting changes the decision

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34 , e29e35 (2013)

[DOI] [PMC free article] [PubMed] [Google Scholar] Clemens KJ, Caille S, Stinus L, Cador M