In US, prices are based on what people are willing to pay rather than what it costs to make. See iphone for example. It costs around ~$200 to make and sells for ~$700.
On one of my answers, where I said that rich people become rich by "taking" money from poor people, somebody took exception and said, should I say "earned". http://www.quora.com/Why-
I like to blog about various topics ranging from education in IITs to social issues in India and US. All opinions and views presented here are my own and not of my employer.