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why is the 1987-s lincoln cent so expensive?
is there something I'm missing?

 

I'd guess the average was based upon a very high grade coin...

Click on the price and you'll see the specific auctions and grade.

[edited to add: I was right, they were both PR 70s: http://www.pcgs.com/AuctionPrices/details.aspx?s=93488&c=45&sr=0 ]

 

It is for one of their collectors coins.
High end "condition rarities" they only slab so many to keep up demand.

How else does a $2 (for example) MS-68 become a $2,000 MS-69?

For the collector who just has to have the best.
(And doesn't know better.)

 

Market demand - rarity (there are not many PR70DCAMS slabbed by PCGS, unlike NGC) - registry egos.

 

Condition rarity, and registry sets, that is why PCGS can do it.

 

I've just about had it with their "price guide."