Closely related to skimming is price gouging. Price gouging is said to occur when firms with market power price products "too high." How high is too high? Surely, cost is a consideration. Any time price just covers cost. gouging does not occur. This is why many firms go to considerable trouble to explain their cost structure and point out costs that consumers may not realize exist. Pharmaceutical companies, for example, emphasize the research and development costs associated with new drugs. When a high price is not clearly supported by cost, buyers take offense.