>Is there some moral or legal obligation that a service's price must tie directly to its immediate costs? No, but in a competitive market we would expect it to

>Is there some moral or legal obligation that a service's price must tie directly to its immediate costs? No, but in a competitive market we would expect it to because competitors will lower their prices in line with their costs to stay in business. At least, that's the theory. When you have companies competing on who can charge the most you have an indication that there is a lack of real competition.