re: Restaurant Group Files For Bankruptcy After Minimum Wage Laws Harm Profitability

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I don't know of any economic law which states that as costs go up prices automatically follow. If this were true there'd be very little risk in operating a business. I know this is a commonly held idea among the right....that if costs go up prices must follow....but it isn't necessarily true otherwise management wouldn't care about managing costs.....prices can only go up if the market allows....it has nothing at all to do with production costs....if production costs dictated market price there would be no point in managing anything...simply build shite or provide a service without regard to cost and prices would automatically go up....that doesn't work....

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