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You've possibly missed my point. The author made the statement that software differs from other items. It does not. Try making a 1km long truck and see if it's
by RyanZAG 11y ago
You've possibly missed my point. The author made the statement that software differs from other items. It does not. Try making a 1km long truck and see if it's perfectly bug free. That doesn't mean trucks don't enjoy economies of scale.
Let me try another way to explain this: if software had diseconomies of scale, then selling each successive copy of your software that you made would make all the software more expensive. Eg, if I made a computer game and sold it to 1 person, I could do it for $10. If I sold it to 10 people, I would no longer be able to afford selling it for $10 and would need to sell it for $20 (x10 = $200 total). Makes no sense right? That's because software enjoys economies of scale. If I sell 1 copy of my game and want to make a profit, I need to charge $500000 to 1 person. If I sell it to 500000 people, I can get away with charging each person $0.99. The more software I sell, the better my economies of scale become.
abrgr explains it nicely in a sibling post here.