actually muawiyah is partly insane, not completely.
In the free market, the actual cost of the product has little to do with the selling price, it has to do with the consumer’s desire.
If he’s not a music person, then he’s going to view any musical CD as overpriced. Music has no value for him.
Think if you were shopping for a new suit, the salesman shows you a $400 suit. The suit is made from the finest materials, a big name designer, well constructed, but you think it’s ugly as hell. Is the suit worth $400 to you? Of course not, you aren’t going to buy anything that makes you look ugly. The salesman says, for you a special price $200? Still going to buy nope. Exhaustedly, the salesman offers you the suit for $50. Would you buy the suit? Well Maybe, then again maybe not.
At the same time the marketers of CDs have raised prices beyond the pricepoint set by the level of desire with the consequence that they lose sales.
To make up for lost income they thought they deserved they've boosted the prices even higher.
Interestingly enough the record clubs (BMG is a good example) do not accept "returns" on undeliverable CDs ~ they make arrangements with the post office to dump the stuff ~ so, if you want that $18 a copy Amy Winehouse album find out where the post office contract trash hauler tips and go there and wait. Beat the price spread every single time.
So, whatever the cost of the CDs, it's low enough that the biggest direct sale distributors would rather toss them away than get them back.