alt Hacker News> There is a prevalent view of economy that insists businesses sell their products at the minimum price they can still make a profit at [...] A Marxist view of economy, if I must.
That's actually how competition is supposed to work in capitalism. If you sell your products at much higher than the minimum price, someone else can make a profit by selling slightly cheaper and taking over your market share.
That's contingent on the competition offering a similar experience and quality, at a smaller price point. As a parent comment pointed out, no LEGO knockoff has been able to provide the same experience as LEGO.
I think what the commenter is getting at is that it's not even about competition. People get mad when companies charge more than is necessary to make what they deem a reasonable profit.
Of course, as you mention, in capitalism, a competitor is free to go in and undercut the leading brand, but they have to be able to sell why they're better AND cheaper.