But in a competitive market, the price should converge toward the cost of production, or there would be arbitrage. At present, the price of digital goods is set by IP monopolies which are almost certainly mispricing them. But the alternative, due to the free cost to copy (vs. cost of production), would be zero.

The proper way forward should involve an IP protection regime where the period of protection is somewhat correlated with the time to produce rather than something arbitrary and fixed.