Comment Cost comes from consumer value, not production (Score 1) 536
The cost of things comes from how much consumers are willing to pay, not how much it costs to make.
An illustration of this is that man go to much effort to find pearls because they are valuable. They are not valuable because of the effort.
In terms of how much profits are justified, any profit is justified. If they were not justified (usually by risk and uncertainty), then more people would shift to this field and compete (thus lowering profits).