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It's not 100 % clear; you're talking about buying 250 articles for $200, right? Just want to make sure I understand the question.
That's $0.80 per article. Give some thought to how long each one may have taken to write, and what a copy writer is normally paid. That tells us there's more than meets the eye. It's not necessarily a bad thing - from your standpoint, if you can make more than $0.80 from each of them it's a good thing. Most people try to do that by offering them up for free to their visitors, and running adverts ... just like the newspaper.
Chances are the way this is profitable for the writer or the directory, is by selling the articles to as many people as humanly possible. Which means yours won't be the first web site to run these articles. They may not come up in searches because of the duplicate content filter, but still, if they're of interest to your users and bring you repeat traffic, or word-of-mouth referrals, that's a very good thing.
So, the short answer is, it's a hard call.
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