I find this amusing. Know how much a Honda Accord costs? About 25 Grand. Know how much a Mercedes S450 costs? About three times as much. They are both great cars, that will be rewarding to own. The Mercedes doesn't have 3 times more parts, but it probably took four times longer to make, and they paid the folks that make it, a lot more than the Honda. It's actually, probably better "bang for the buck," although it won…
I doubt it. Luxury goods don't proportionately more cost much more to produce than commodity goods.
Instead they often derive their value from perceptions and exclusivity. That is people perceive the object to be more value for their own reasons, or they are made more expensive as a proof point of exclusivity / conspicuous consumption