Business A would see labor as an expense. Two companies A and B exist there must be some market for widgets. Company A will continue to exist. Company A can easily adjust operating cost.
“Two companies A and B exist there must be some market for widgets.”
Bad assumption. Demand is not inelastic. My whole point is that once the jobs are gone, the demand disappears as well. People can’t demand something they can’t pay for.
“Company A can easily adjust operating cost.”
Adjusting operating costs doesn’t help you if you have no income.