I don’t claim myself to be a financial genius but I believe I can save the Australian government a lot of time and money:
Three American companies-Apple, Microsoft and Adobe-have been summoned by the Australian Parliament to explain why they charge higher prices Down Under than in other countries.
My proposal is to call of the hearing because I can provide the answer. The reason Apple, Microsoft, and Adobe charge what they charge is because those are the prices people are willing to pay. It’s as simple as that. If I manufacture a laptop, charge $2,000 for it, and enough people buy my laptop to turn me a profit I find acceptable then I know I’ve set the right price. Unfortunately the Australian government is unlike to find, “Because those are the prices the market will bear.” as an acceptable answer.