Supposing that a company could always exactly offset rising costs by raising prices assumes that such a company was not setting an optimal price in the first pl

Supposing that a company could always exactly offset rising costs by raising prices assumes that such a company was not setting an optimal price in the first place. If they could increase profits by raising prices, they would have done so already. Low labor costs aren't what's keeping McDonalds from charging $15 for a cheeseburger, it's the fact that nobody would buy a cheeseburger for $15.