If you have tuned your production to use your capital equipment and manufacturing staff optimally, the next 10% of production is likely to cost you more not less than the last 10% you were making previously. You might need to run overtime. You might need to buy more capital equipment. You might need to light up or rent more warehouse/logistics space. You risk over-producing at a higher cost and hurting your future results.

The price signal helps cover those costs and risks, not just telling you to make more, but by making it plainly economical to spend the money to do so. Otherwise, “screw it; I’ll keep making at the tuned level rather than doing all this extra effort to make less margin-% and maybe less free cash flow.”