/biz/ - Business & Finance

>>29337729
because markets are not efficient in the short term

Cost increase doesn't automatically translate to price increase. Depends on the business model and consumer segment product is sold to. Your theory only holds for companies with extremely thin margins, even then, these businesses could easily take a hit and usually pay above minimum wage regardless due to their reliance on large sales volume, so they are usually huge megacorps.
Example: apple sits on large pools of cash and produces their product for a small fraction of the cost. Upon moving their manufacturing overseas in the 2000's for increased production efficiency, they did not lower product price dramatically, in fact brand strength was enough to keep prices high. get fucked idiot.