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What if is the right phrase. You assume they are only looking for a specific margin, which they have to optimize for. They already optimizing to maximize the to
by cf498 7y ago
What if is the right phrase. You assume they are only looking for a specific margin, which they have to optimize for. They already optimizing to maximize the total profit. If there is a productivity increase of the workforce possible they take it unless the conditions get so bad, that a lack of workforce or lawsuits result in higher losses. Same goes for a price increase, if the number of sold products shrinks less then the additional margin per products its a reasonable thing to do.
That piracy/fraud/costly mistakes increase the overall cost for consumers just doesnt happen, no large company in their right mind has additional profit potential lying around that they just dont take because they dont need to. What happens is that at some point the market segment becomes no longer profitable and companies leave that segment entirely.