According to price theory, the cost is the basic component of the product value. It determines the lowest limit of the product price. If the price is lower than the cost, the company will be unprofitable. The upper limit of the price; while the market competition conditions regulate the price between the upper limit and the lower limit, and finally determine the market price of the product. The main meaning of this passage is:. ['Product prices can vary between upper and lower limits.', 'How much the product price should be determined by the market competition.', 'Product prices are affected by factors such as cost, market demand, and market competition.', 'Regardless of market demand and market competition, corporate product pricing must be higher than the cost.']