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Isn't that fully borne by the manufacturer? Suppose you're the manufacturer of a car that costs $30k to make and sells for $50k. You're posed with the question of whether to add a non-functional part that costs $5k. If you add the part and don't raise the price, then you're eating a $5k loss. If you add the part and raise the price by $5k, you don't eat the loss, but it also means you could have charged $55k for the car. No rational consumer is going to be like "I would have paid $50k for this car, but now that it contains $5k of non-functional component, I'm willing to pay $5k more for it now!".


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