You're smart enough to understand economics. The 878 is a $14 radio, but some of us will pay what it's worth to the individual. I happen to feel that $200 for a disposable radio is a fair price. Would I pay $205 for it? He'll no, that exceeds fair market value for me. Would I pay $600 for a Yaesu FT5? Not on my life. The 878 far exceeds my performance expectations for a disposable radio. Simply put, a bargain.