Nice try at justifying crazy behaviour by factory managers

IRL what firms do to claim higher market share (if they are more efficient) is sell at a lower price, not throw away unsold production. This forces down the market price and hence drives out less efficient producers until the market capacity (reducing due to dropouts) matches the volume of demand (increasing due to lower prices).
This brings me to my other pet peeve about economy in V2 1.1, which is that prices are set by reference to potential demand (what pops would like to buy if they could afford it) and not effective demand (what they actually can afford to buy). This leads to (for instance) high price for fertiliser, due to potential luxury good demand from numerous farmers. In turn this leads to overbuilding of fertiliser factories by the AI, so that there is persistently very low percentage of fertiliser produced that is actually sold, leading to many fertiliser factories losing money and a few barely breaking even, but demanding truly excessive amount of inputs (because so much more fertiliser is made than is sold).
So large potential demand -> high price -> high production -> high demand for input goods.
The net effect is that the input goods factories and RGOs make good money and the end factory is a loser (but often built by the AI).
You really should amend the price formula to reflect effective demand (e.g. use yesterday's actual purchases not todays potential demand), so that the AI won't build the wrong factories so often.
Of course if you do this (which you should), the inefficiencies of factory production process will become even more glaring (because not now covered by grossly overstated prices).