[BobbyJo]

> Not really. You're pointing to production costs, but production costs just define the price's lower bound, not the price itself.

I was replying to a comment about how intensely competitive these markets are, and how that means margins are driven down. If your business is operating at a very low margin, and costs rise, you will necessarily raise prices, because you are already operating on the price floor.

Low margin businesses are defined by the price floor (the cost) being very close to, if not equal to, the price sold at.