4 ms·
what is your evidence for this? High wage countries don't seem to have a shortage of places to eat. if competitors are subject to the same labor market, all pr
by dunco 5y ago
what is your evidence for this?
High wage countries don't seem to have a shortage of places to eat. if competitors are subject to the same labor market, all prices should go up together which would not give you a competitive disadvantage. certainly a lesser disadvantage than not being able to open because you are unwilling to pay the market labour rate.
- josephcsible 5y ago> what is your evidence for this? That's a textbook example of price elasticity from economics 101. You can also think about it this way: if that weren't the case, they would have already raised their prices even before there was a labor shortage. > all prices should go up together which would not give you a competitive disadvantage Not a competitive disadvantage, but still a disadvantage. Take restaurants for example. If every restaurant in the world raised all of their prices by the exact same amount at the exact same time, they wouldn't lose any business to each other, but they'd still lose a bunch of business to people eating at home.
- kwertyoowiyop 5y agoThat’s the theory, but is it true in practice? How do you KNOW for certain that if they raised their prices by X, their revenue would fall by > X?