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In reply to the discussion: Fast food jobs in Denmark pay living wage [View all]JonLP24
(29,322 posts)I don't know how McDonalds' - Denmark operates but generally they charge the highest they can get away with. This is an extremely simplistic example but highlights the balance firms seek in pricing. If 5 people bought something at $2 would mean they make $10. If they raised it $3 but only 3 people purchased they made less. If they lowered it to $1 and 8 people purchased they made less.
Ironically part of what goes into price raises is CEOs crying "we have to" due to some sort of rising cost when in reality the had a high quarter in earnings so they raise they price because they can.
Article makes excellent points and if the populace is convinced that they have to pay more for a Big Mac and feel good about it then McDonalds' did good there.