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Prices are set based on supply and demand. Cost of production has nothing to do with it, except to determine whether a product is worth producing.
Answer
#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/24709 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/24709 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/