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The market is efficient. You raise prices and pay workers more -> Fewer people are willing to purchase at that price -> You make less profit -> You don't make e
by imustbeevil 4y ago
The market is efficient. You raise prices and pay workers more -> Fewer people are willing to purchase at that price -> You make less profit -> You don't make enough profit to pay people more. It's a complex problem. You could make the same market argument as: if it was profitable to charge more and pay workers more, why doesn't anyone just start a company that does that and outcompete the others?
- lotsofpulp 4y agoSupply and demand are always in flux, and the repeated attempts to match these is what causes market efficiency. It is frequently possible that prices are not keeping up with supply and demand, and there exists arbitrage opportunity that requires people knowledgeable about the market to act on.
- danielheath 4y ago> The market is efficient. The market is more efficient, on average, than other methods of price setting. It’s not perfect efficiency (or even close to it).
- deleted 4y ago[deleted]
- indigochill 4y ago> if it was profitable to charge more and pay workers more, why doesn't anyone just start a company that does that and outcompete the others? They do (sans outcompeting). We just call them luxury goods. It's a different market.