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It seems literally impossible for an entire market to be paying under market. This market equilibrium is definitely rising over time, but it’s still a market.

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The economic theory would be something like given lack of (senior) engineers, salaries should rise to expected marginal revenue.

Conflating actual outcomes in real markets with economic theory is typically unhelpful.

Microeconomic theory would cap total marginal costs (including COGS) at marginal revenue, not just salaries.

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