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I believe this is the case for several reasons. In reality, clothing is already marked up so much--that it is more cost effective to keep the price the same regardless of the size of the article of clothing. By charging the same price for all sizes, you are able to keep the market "fair" for all consumers (no "discrimination" against larger people). Beyond this, if clothing's price increased by the proportional amount for a shirt based on size differences, in reality you'd only be paying pennies more for that shirt (if they really charged you the difference that they pay). This would illustrate how low the cost of the actual clothing really is, before it is marked up. So in summary, the clothing costs the same, because it is marked up so much to begin with, that it doesn't cost the clothing manufacturer or distributor any significant amount more, whether it is a small or an XL. In reality, it is probably more expensive to deal with increased marketing costs, different price tags, signage, etc., for different sized articles, than to just keep the price the same for all of the sizes. Either way, it is intended to increase profits, and maximize sales.

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