Earlier quoted context omitted.
How would you set the market value of a physical copy of a digital good? Music CDs are sold for roughly $10-$20 USD. The actual cost of making the physical CD is around $1. People seem much more agreeable to accept a $9-$19 markup on a physical CD than on a digital album, which costs $0 to copy but ostensibly has the same cost to produce otherwise.
Well, if there is scarcity (i.e.: supply is somehow limited), then the market value is where supply and demand curves cross. In other words, I'd throw a bunch of CD's into the market and let the price stabilize. That has nothing to do with how much it cost me to make it (the same way that the salary a doctor makes has nothing to do with how expensive the education was), but everything to do with opportunity cost: wou…
In my experience, the market appears to have established an approximate range of fair prices for CDs in general, that does not appear to be based on how many copies have been pressed.
Obviously there are some major variations if too few copies were made and the publisher refuses to make more to meet demand (putting the CD "out of print"), or if many more were made than people want to buy and retailers need to clear out inventory.
But in general, if an artist produces a new CD, they could press 5 copies or 50,000 copies, and I would expect the selling price to be somewhere in that $10-$20 range or so, not because of the number of copies of that particular CD, but because of what the market expects CDs to cost.