In the days when U.S. Steel was one of the largest companies in the USA, they had a pricing

system that was called Pittsburgh Plus. The "base" price was the price of steel sold in

Pittsburgh (the headquarters of US Steel), and the farther one went from Pittsburgh, the

price increased, or what is called Base-Point Pricing.

When the U.S. Department of Agriculture began to regulate dairy prices, the USDA came

up with a pricing program that set a "base" price of a gallon of milk to be sold in Eau

Claire, Wisconsin, and then dairy farmers would receive a bonus (subsidized by the USDA)

based upon their distance from Eau Claire.

Economically speaking, were the two pricing programs based upon the same economic

principles? Why or why not? Explain your answer.