Gates> The second assumption this chart makes is that the total cost of production increases as supply increases. I think that's a poorly phrased segway. What

Gates> The second assumption this chart makes is that the total cost of production increases as supply increases. I think that's a poorly phrased segway. What he actually seems to be talking about later is that marginal cost flattens after some number of units, but then continues at a fairly constant level (representative of material inputs). Contrasting this with software and intangible production, where the marginal cost continues to decrease for much larger scales, before hitting a much lower floor (compute + disk + amortized development + maintenance). And how the proportion of our economy governed by that different marginal cost vs volume curve has continued to grow. And that this has underappreciated implications on how we design economic law. As he notes, Capitalism Without Capital is an exploration of this idea that he read and enjoyed.