In a functioning competitive market, though, prices should trend towards some function of risk-adjusted costs, unless there is a barrier to competition like a p

In a functioning competitive market, though, prices should trend towards some function of risk-adjusted costs, unless there is a barrier to competition like a patent, legal cap on supply, or other monopoly-type situation. That's supposed to be the whole advantage of capitalism, the invisible hand reallocating resources optimally to meet demand and everything. A large profit margin is just a market inefficiency, and should be rare and fleeting.