If goods get cheaper wages fall due to lower profits.
Rising costs for insurance and employee medical benefits will also lower profits, he said.
Investors generally feared a wave of price cutting would lead to lower profits.
Aggressive price reduction leads to lower profits unless the product's costs can be reduced.
But we also knew it might lower profits of arms and technology manufacturers - perhaps including American.
They have voiced fears that it would lead to lower profits for brokers and dealers and might drive some of them out of business.
Cutting prices in a situation would not necessarily create more demand for a firm's products; it may just lead to lower profits and bankruptcy.
The high budget of the film meant high prices for distributor rights, further lowering possible profits.
This has increased the costs of transportations and has thus led to lower profits for companies operating in the territories.
However, even if total sales do increase slightly, this may still lower profits, as producing two products increases costs over a single product.