crumas2 on 05 February 2009
The real question is how would a price cut affect volume. If a company sells 1,000,000 copies at $60 or 1,200,000 copies at $50, then the resulting revenue is the same. The profit will differ based on the fixed costs of duplication, packaging, distribution, etc. Marketing costs would not be a factor unless additional money had to be spent to promote the lower price.
