Businesses also make money by reducing the inputs that go into services (e.g. lowering the quality of the service), thus achieving a higher profit margin.
It's not a flawed premise. It just doesn't occur 100% of the time. It tends to occur in industries with poor competition (mono/oligo-polies)
It's not a flawed premise. It just doesn't occur 100% of the time. It tends to occur in industries with poor competition (mono/oligo-polies)