cost of a product or service is justified by the benefits it provides because it reflects the value that the consumer receives in return. When a consumer purchases a product or service, they are essentially exchanging their money for the benefits that the product or service offers. If the benefits outweigh the cost, then the consumer will perceive the purchase as a good investment.

For example, if a high-end smartphone is priced at $1000, but it offers advanced features, superior performance, and durability, then the cost is justified by the benefits it provides. The consumer is willing to pay the premium price because they value the benefits that the smartphone offers, such as convenience, efficiency, and status symbol.

On the other hand, if a product or service is overpriced and does not deliver the promised benefits, then the cost is not justified. Consumers will be reluctant to purchase the product or service if they do not see the value in it.

In conclusion, the cost of a product or service is justified by the benefits it provides because it reflects the value that the consumer receives in return. Consumers are willing to pay for products or services that offer desirable benefits, and the cost should be proportional to the value that the consumer perceives.