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Which businessman in their right mind will decrease the price of their products because of cost decrease? Not unless there is intense competition. Because of th
by la64710 4y ago
Which businessman in their right mind will decrease the price of their products because of cost decrease? Not unless there is intense competition. Because of that for large scale monopoly business like commodities once the prices go up it may not come down again.
- Green_man 4y agoI may be missing something, but if there is no competitive pressure/monopolistic market, why would these businesses need the excuse of inflation/cost increases to increase their prices? Wouldn't we expect prices to have gone up before inflation? Or is this a specific criticism of a regulatory blind spot for reigning in market power? Monopolies can get away with price increases now, but they wouldn't normally?
- smileysteve 4y agoWhat is "before inflation"? Deflation is bad it means you should keep your dollars instead of investing them.
- lupire 4y agoDo you buy less food when interest rates on your investments are higher?
- massysett 4y agoThe argument is that they had market power before, but were afraid to exercise it for political reasons or because they feared enforcement action. Now, with inflation, the company has an excuse to raise prices, but now they're raising them only partly due to increased costs, and partly as an exercise of their market power.
- jliptzin 4y agoIf you sell commodities that is literally the opposite of a monopoly