I think it's where it gets interesting. Imagine a situation on the market where margins somehow are lowering for everyone (all employees demand higher salaries,

I think it's where it gets interesting. Imagine a situation on the market where margins somehow are lowering for everyone (all employees demand higher salaries, natural disaster, anything). All businesses in the market raise their prices, except one, which keeps operating at a lower margin. It is easy to see what would happen next - the company that didn't raise prices makes much more than before and all competitors suffer losses. What if businesses collaborate to raise prices all at once? That would be price fixing which is illegal. So margins tend to become lower and lower over time. That leads to a very important problem - Tendency of the rate of profit to fall [0] [0] - https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit_to_fall https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit...