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Even with zero marginal cost, you can still have substantial fixed costs. And actually costs don't define prices — what the market will bear defines prices.
by exolymph 9y ago
Even with zero marginal cost, you can still have substantial fixed costs. And actually costs don't define prices — what the market will bear defines prices.
- chii 9y ago> what the market will bear defines prices. only if there's no competition, or there are substantial barriers to entry (such as regulation).