Mostly no. The major drivers of price are supply and demand, not cost and demand. However, the “most profitable price” ( which is rarely the highest for those unfamiliar with economics ) does increase with the marginal cost. So the cost of production does play a role.
Mostly no. The major drivers of price are supply and demand, not cost and demand. However, the “most profitable price” ( which is rarely the highest for those unfamiliar with economics ) does increase with the marginal cost. So the cost of production does play a role.