Some markets (particularly raw materials, certain commodities and manufacturers that sell to monopsony buyers) are more fixprice than others, where firms sell a

Some markets (particularly raw materials, certain commodities and manufacturers that sell to monopsony buyers) are more fixprice than others, where firms sell at a stable markup cost and adjust output (i.e. by reducing employment or units) as production costs change. While demand is always applicable, production costs often dominate in more vertically integrated firms and there are large lags in adjusting to signals.