- Pass the cost on to the consumer by increasing prices
- Reduce costs by cutting back on labor (reduced hours, automation, &c.)
- Accept a smaller profit margin
- Or just say “screw it all” and go out of business
The following video from Prager University makes a similar point, using that American icon, the kid’s lemonade stand, as an example:
Progressives take note. This is a lesson you need to learn.
By the way, those evil oil companies the Left likes to rail at? Their average profit margin is just above six percent. You know what industry has a larger profit margin? Law firms. They net on average a whopping 30 percent.
Maybe the government should regulate law firms?