Every product follows demand curves. At a price of 0 you could find infinite usage. This has nearly zero relation to how much it costs to provide the product.
replyExcept of course it relates. All else being equal, we will prefer $X COGS over $2X COGS because that helps us with both profit margins and price competition.
replyIt relates in the sense there's a minimum cost of production without losses, not the actual price people are willing to pay.
replyFraming it in terms of the price people might be willing to pay for a single product in isolation frames the point I was making, which was about price competition, right out of the picture.
replyMaybe I'd be willing to pay $10 for product A if I had other options. But if there's a product B for $3 that's not quite as nice but still ticks all my boxes, then product instantly becomes a lot less attractive.