"As for price gouging that is just BS. It is pure simple Capitalism. Now, if you don't like that..."
Price gouging is when you need bread, the supply is limited and a merchant triples the price. Pricing a toy train product higher than some people like is simply figuring out what it costs you to make and sell it, and leaving some room for profit (capitalism, as you say).
No one is accusing Lionel of price gouging for selling the former MTH Premier C-Liners for about what MTH would be selling them at, give or take. Tells us something about the accuracy of the accusations of price gouging. Some models are less expensive to make than others, or made in much higher volume.
Larger production runs make it possible to spread fixed costs (e.g. tooling) over a much larger number of models. Dramatically lowers the costs and final MSRP. Anyone think more people are interested in New York Central or New Haven C-Liners than a newly tooled steamer from a tourist railroad in SW Pennsylvania? Perhaps. 
