> Everyday people honestly don't understand why prices are what they are. I've had a number of conversations with people and they truly believe that prices are arbitrarily set based on how much owners want to screw customers over.

Generally, a company will charge the highest price they can get away with, irrespective of the cost it took to produce the good or service.

Prices only approach the cost of production when there is strong competition among industry players. Basic tactics like branding, consolidation, and lack of transparency in an industry help subvert competition.