We typically think of costs as price tags and taxes. Costs, do include such things but are more complex than that. Often the invisible costs trickle down for the consumer to pay. That is what results when businesses are punished with excessive taxes and government regulations. For instance in California gasoline is required to have special tanks at gas stations, and special ingredients for protecting the environment. As a result of gas companies having to pay for such things, Californians are paying out of sight prices for gasoline.
Taxes do not have to be paid by the businesses they are imposed upon; they can be passed along to the consumer. Cigarette companies are a good example. When they began being taxed heavily by the government, the companies simply passed that cost over to the consumer. That's why packs can cost as high as $5 now, while years ago they only cost as little as 50 cents a pack.
