here seems to be an implicit link in your post connecting cost to price. Cost is the amount Producers pay to suppliers, utilities, employees, taxes, charitable contributions, etc. to produce a product. Price on the other hand is what a marketing person/team thinks the product can sell for in the quantities produced. This may or may not have anything to do with cost other than it needs to exceed that number. Shareholders of public companies, executive bonuses, stock exchange analysts, and any profit-sharing program all demand margins and no margin, regardless of how high, is ever enough.