Fines and taxes are incentives. Companies will do whatever’s cheapest, so you can make the good thing cheaper, or the bad thing more expensive. Both will have a similar effect, it’s just a question of where the margins are.
If a company is selling something at-cost and gets taxed, then they’ll have to raise prices for the consumer, but if they’re getting a stimulus from the government it gets covered by tax payers. Which one ends up being the right choice depends on the product and company in question.
Fines and taxes are incentives. Companies will do whatever’s cheapest, so you can make the good thing cheaper, or the bad thing more expensive. Both will have a similar effect, it’s just a question of where the margins are.
If a company is selling something at-cost and gets taxed, then they’ll have to raise prices for the consumer, but if they’re getting a stimulus from the government it gets covered by tax payers. Which one ends up being the right choice depends on the product and company in question.