A lot of firearm prices are driven by "willingness to pay". I can't find the source as it was a long time ago, but I remember reading that Glock can manufacture a handgun for under $200 (they sell for $600).
If you think about it, a gun is nothing more than a collection of milled (or cast) metal parts. A certain level of precision is required, but the material and manufacturing costs (with automated CNC) are pretty small.
If you think about it, a gun is nothing more than a collection of milled (or cast) metal parts. A certain level of precision is required, but the material and manufacturing costs (with automated CNC) are pretty small.