When a U.S. contractor set out to build a building or a road, he ordered cement from as many as ten plants. The nearest might be next door, the farthest 1,000 miles away. But when the cement was delivered, it all came at the same price, no matter whether it had been shipped one mile or 1,000. The "multiple basing point system" worked that way.
Under this cozy arrangement, the base prices of cement were fixed at certain "basing point" plants across the country. Beyond the base price the buyer also paid freight...
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