What reasons might a manufacturer of luxury items or a pharmaceutical firm have for setting very high prices?

Mar 23, 2007 by Angela L | Posted in Other - Business & Finance

Critics accuse the industry often marketer of consumer uses by establishing that the price is much higher than the cost for the production of the goods or services - sometimes 10 or 20 or more times the cost. How do you feel about that?

There are two reasons that I can think of for the higher costs:

1) specialized elements of higher prices. Examples: Microsoft Windows, blue flawless diamonds, a patented item, etc.

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