You’re assuming that the price for a product should be based on the cost to offer it. In most markets, price is a function of the value perceived by buyers and relative pricing of similar products. Cost doesn’t enter into the equation.

I'm well aware of how markets work, but that doesn't make it less bonkers. Bottled water companies take municipal water, do some "filtering", and sell it for a 10x-100x markup. I'm sure the people buying the water thinks they're getting their money's worth, but that doesn't mean we can't point out how absurd it is, nor is " in most markets, price is a function of the value perceived by buyers and relative pricing of similar products" a satisfying counterargument to that.