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Right, companies have fixed profit rate and they lower the price when the costs go down. Got it, thanks. Great business tip!
by mrtksn 5y ago
Right, companies have fixed profit rate and they lower the price when the costs go down. Got it, thanks. Great business tip!
- Dylan16807 5y agoWhen costs go down, and profit margin increases, the price point where a company can achieve maximum profit also goes down. This doesn't require altruism or stunts or a fixed profit rate.