According to The Washington Post, some companies are exploiting inflation to pad their bottom lines.
- What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases?
- If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same.
- How do analysts expect EBIT margins to react this year?
- What do you think is driving inflation? Why?
Kaissar, N. (2022). Companies exploit inflation to pad their bottom lines. The Washington Post, March 4 (Retrievable online at https://www.washingtonpost.com/business/companies-exploitinflation-to-pad-their-bottom-lines/2022/03/04/73c8b42c-9bb3-11ec-9987-9dceee62a3f6_story.html)