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Economic theory would suggest that you price your product where it will give you the maximum amount of return or profit. So even if increasing price might lowe

• TulliusCicero 3y ago
  Right, but normally this is kept somewhat in check by competitive markets. Prices rising are usually a sign that either input costs have risen in a way in which all parties have to deal with them, or the market is becoming less competitive somehow so incumbents can get away with higher prices.
• blackoil 3y ago
  In short term aligned with the bonus cycle of management. If high price cause people who have McD as habit slowly trickle to alternate chains/cuisine/modes of eating. In long they may make loss.
  • astrange 3y ago
    McDonald's is a franchise so you can't guess its behavior by your assumption of how McDonald's corporate management works.
• chii 3y ago
  > price your product where it will give you the maximum amount of return or profit. this is where price discrimination, aka charging a different price to each customer, comes in. By finding out the maximum a customer would be willing to pay, you can get more profit than a static price for all customers. The only thing is that another customer would not like to see themselves pay a higher price for the same good. Coupons, apps, etc, are the modern way to get around the customers seeing the "real" price others are paying.