Maybe a lasagna that feeds half a dozen people. That's all I've ever seen in that price range. What single-entre item costs $7?

Amy's organic stuff.

I think that is exactly the point the chef was making. Consumers in general are not willing to pay (or can't pay) for high quality frozen food. Look at how many brands are available in the $2-$3 range vs. higher cost items.

But I mean, I can buy it at the normal "cheap" grocery store. Stores like Whole Foods have even more options.

My "normal" grocery store has Amy's and the like in a special section I think of as the "food for hippies who didn't have time to go to Whole Foods today" section. They also keep all the "environmentally friendly" cleaners and such in the same area. (I believe it is technically referred to as the "natural foods" section, but none-the-less the point is that they actually segregate the expensive, organic, natural, enviro-friendly, etc stuff off into a little store within a store.)

Where you're buying it might be a big factor. Single-serving Amy's frozen dishes cost $5 or less at my local Whole Foods.

Amy's also charges $4 for a can of beans... they're a rip off, so not really a good example.

Frozen pizzas with pictures of famous chefs on them.

"Cost" (in the grocery world) usually refers to the wholesale cost to the store.

But the article says "$2-$3" as what people want to pay, and that's what stuff costs at the store.