Why do better MC cartridges cost a fortune?

Why does everyone have such a problem with value pricing. If company X wants to sell something that delivers a 1% increase in perceived performance over anything else they have then they are free to (and by economic theory bound to) charge as much as the market is prepared to pay for that improvement. The manufacturing costs or other fixed costs are irrelevant, as long as they are covered in the long run. And, As others have pointed out, in the context of a six figure analog system changing the cartridge is in fact one of the cheaper ways of upgrading.

Big deal is that the increasing number of audiophiles cannot afford anything real good new and like second rate citizens have to chase things on a 'flea' market.  

Come on @inna to use AirTight as an illustration. At the same time they added the $15K Magnum Opus they also brought out the $2.5K PC-7 at the bottom end so bringing the cost of entry to the line down. The same is true of most manufacturers in that we are seeing options added that expand the range at both ends

They are the emperor's new clothes.

It's like real estate in Manhattan. Do you know who drives the prices up and how exactly it's done?
$2.5k for an ordinary cartridge is a lot. It must be outstanding.
By the way, great $50k speakers is okay with me. If you keep them for 20 years it's not too bad.