Most of that I didn't say, but it's certainly true that wage increases are commonly absorbed by reducing profits (or investment) rather than closing the business (!) or increasing prices.
Closing a business because wages or any cost go up a bit would be absurd. That is way overstated. Of course there is some undefined point where costs are too high to sustain, but closing and opening businesses is not trading stocks on Robinhood. There are large transactional costs, including to your reputation - investors, creditors, co-workers, business partners, employees, who have invested their precious time, money, and careers and reputations with you, would be very angry (probably they would replace you as CEO and keep going). And how will you pay your mortgage next month?
> the amount of profit can be increased or decreased independently of any other factors
It indeed can be decreased that way, except that the money has to go somewhere - retained earnings (savings), new gardens in the courtyard, even wage increases.
