When a company sets prices based on production costs, its profits depend on how efficiently it can produce goods. Even if factors like limited resources affect production efficiency, pricing at cost can still be profitable. This is because even when production costs increase with scale, pricing at cost can lead to higher profits. This applies to situations where a single buyer controls the market, with or without varying prices for different customers. In cases where pricing at cost is not ideal, there are still ways to set prices that can help maximize profits within certain limits.