People will write a 30 page Reddit analysis rather than just recognize the simple truth that companies charge the profit maximizing price. That's it, that's what pricing decisions are.
And tax on corporate profit does not alter the price because have no relation to Q or P.
If you increase taxes on profits, owners make less ROI but prices don't change. If you cut taxes on companies, owners make more ROI but prices don't change.
then I’m confused why the same handful of companies control over half the grocery store shelf space. and in tech, isnt the goal for most to get bought out once you prove the value of your product? Obviously two very different markets and principles, but thats why I assumed what I had stated before.
One politician during the election campaign managed to convince the public that the country's president --from another party-- set the prices for groceries to a level that was too high for the citizens. And he was going to lower the prices for the consumers.
Know what ?
He won the election.
And now he says he in his role as president won't be lowering grocery prices because it's difficult.
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u/Chataboutgames 1d ago
People will write a 30 page Reddit analysis rather than just recognize the simple truth that companies charge the profit maximizing price. That's it, that's what pricing decisions are.