We find out price the product at the absolute maximum the market will bear and we drive the cost of production to the absolute minimum. If we don't know the price, then we can find through research of the market and we find that the cost will be higher which market bears that can be set easily. If the price is more than the production cost then it is good market to set the price and it is also known as the commodity market. And, if the price is less than the production cost then it is not market to set the price.