No its a logical argument of why you cannot set prices higher than market rates.
Let's keep going with your case though. Why don't your competitors set their rated at 2x or 10x? What stops them? Are you going to claim they all voluntary choose less margin?
There are companies maximizing profits right?
I know Arizona and they have had a profitable business of selling sugar water, but as far as I know they are no where near the size of Pepsi or coke
Will they be able to stay in business without price increases in the future? Or more aggressive cost cutting?
Remains to be seen.