Sir-Jawn t1_iujtfkk wrote on October 31, 2022 at 9:34 PM

Reply to comment by ZebZ in Editorial: Better bet: Despite turbulent Senate race, Oz better prepared to lead by User_Name13

When the market is willing to pay $15 for that widget, then that’s the market price. There is enough demand to sustain $15. If your theory were true, a company would swoop in, build widgets for $11, and sell them for $13-14 undercutting competition. Why aren’t competing companies doing that?

ZebZ t1_iujxxs3 wrote on October 31, 2022 at 10:07 PM

They are raising prices accordingly, clearly. The new floor is set, why would they leave money in the table?

US Corporate Profits Soar With Margins at Widest Since 1950

> A measure of US profit margins has reached its widest since 1950, suggesting that the prices charged by businesses are outpacing their increased costs for production and labor.

> After-tax profits as a share of gross value added for non-financial corporations, a measure of aggregate profit margins, improved in the second quarter to 15.5% -- the most since 1950