Businesses don't do everything possible to minimize absolute production costs, they try to minimize relative production costs. All else being equal, if my business and all my competitors are forced to pay twice as much for components, we will all raise prices, we will probably keep similar margins, and we will all make more profit. "All else being equal" is the hard part but it's not too far from reality in some situations.
> if my business and all my competitors are forced to pay twice as much for components, we will all raise prices, we will probably keep similar margins
No, the organic food fight has always been about should we reap the (positive) economies of scale that are so abundant in agriculture? That's the cost structure of concern here and it only applies to one side - those currently taking advantage of those efficiencies. We were able to feed society with family farms, it just took 90% of the population to be farmers.
