I don’t think you ever took even economics 101 in school because for almost all products there exists a price where you can actually increase your profits by decreasing the price because the larger sales volume offsets the revenue lost. Applies to your fridge example as well. You just assumed the same sales in both scenarios which is not even close to being realistic. And your Nvidia/AMD example ignores the high inflation seen during that period.
They are making the assumption that demand is constant because the product is a necessity (such as with something like insulin). Profit at higher volume and lower prices only happens with products with elastic demand.
I don’t think you ever took even economics 101 in school because for almost all products there exists a price where you can actually increase your profits by decreasing the price because the larger sales volume offsets the revenue lost. Applies to your fridge example as well. You just assumed the same sales in both scenarios which is not even close to being realistic. And your Nvidia/AMD example ignores the high inflation seen during that period.
They are making the assumption that demand is constant because the product is a necessity (such as with something like insulin). Profit at higher volume and lower prices only happens with products with elastic demand.