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Not trying to be rude: I’m not sure you really know what “marginal cost” means and it’s relation to a product’s economic impact. Twice, so far, you’ve used it h
by slovette 7y ago
Not trying to be rude: I’m not sure you really know what “marginal cost” means and it’s relation to a product’s economic impact. Twice, so far, you’ve used it here in the wrong context.
- anoncake 7y agoPlease explain then.
- slovette 7y agoI didn’t see this response, apologies. It seems you keep referencing: marginal cost == value. That’s very untrue. Indeed marginal cost is a factor in value, but is most certainly not directly relational. Simply put, value is ascertained by a product’s measure of overall impact. An example would be a simple script that tally’s an employee’s hours from clock in and clock out times. Say a task that once took a bookkeeper an hour to do, with the script takes .1 seconds. Let’s say the script cost $5 to create but zero dollars to duplicate. It doesn’t mean it’s value is zero. It’s value is equivalently equal to the hour of bookkeeping time that person saved multiplied by however many times the task is used in any given time frame. Marginal Cost is 0. But the value is far from it. A similar exercise is done to evaluate the value of entertainment. Different factors, but same idea.