Higher profits aren't always due to increases in productivity. Profits can grow due to decreases in the price of raw materials (e.g. oil), decrease in competiti

Higher profits aren't always due to increases in productivity. Profits can grow due to decreases in the price of raw materials (e.g. oil), decrease in competition (e.g. due to an aquisition or a bankruptcy of a competitor), relaxation of regulation (e.g due to lobbying), and a variety of other chnges in the market.