But there are NO income taxes to pay.
Seriously though if pricing is not done right then the business generally has no profits and does fold. YOur question merely points out what I have been saying -a business should try to operate at the point of maximum profit which will mean maximum income taxes and maximum after tax income.
Price theory has developed to explain why businesses succeed or fail due to pricing successes and failures. You seem to believe that a business can select any price it wants and still be successful. The income tax is NOT a cost of business but a tax on what is LEFT after the business operates. It does not affect the allocation of resources within the business as do ALL real costs.
No, and don't try to twist my words. The business must either be able charge a high enough price to be profitable after taxes, or fail. It cannot just "select any price it wants" unless it is an unregulated monopoly or de-facto monopoly. But neither can it fail to include all factors to net profitability, which includes costs, prices, and adjustments to gross income, such as taxes.