Subject: Re: Turkey Prices UP 40%
Carpian,

I guess you're saying the supermarket spreads the cost of the free turkeys it gives out among the prices it charges for everything else.

However, since I do not get any discount if I do NOT get a turkey (or free ham, or free lasagna), there is zero marginal cost to me for accepting the free turkey (actually it's a negative marginal cost since I am getting something of value for zero additional cost that I would be paying for anyway); we do not shop primarily at this supermarket to get the free turkey, and would continue to do so even without the free turkey.

As it is with many issues in tax planning, it is the marginal cost of the turkey that is the focal point.