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They get away with prices like this in the SF Bay Area because so many people commute long distances and there are so many two-earner families. A lot of people just don't want to spend the time to make an extra stop to save a couple of bucks on milk, and that's what the chains count on. And the people who don't care are generally those with pretty good household incomes, so the higher price on milk isn't a deal-breaker for them. (And of course these are the people the supermarkets want as customers anyway, because they buy more expensive, high-marketup items instead of bulk food.)
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