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Problem is audience, if we had unlimited number audience, maybe marginal cost would be zero. In current situation, cost of production (including labor), is sha
by bluesign 6y ago
Problem is audience, if we had unlimited number audience, maybe marginal cost would be zero.
In current situation, cost of production (including labor), is shared with intended audience.
Imagine a edge case, I am writing a book to a very specific audience, lets say only 100 people would be interested.
I spent lets say 100 usd. So basically cost for each reader will be 1 usd.
Or maybe you developing a SaaS app, would you be ok if I pay only my marginal cost?
Even the marginal cost of production/copying is zero, actual cost is not. (edit: removed second marginal)
- bawolff 6y ago> Even the marginal cost of production/copying is zero, actual marginal cost is not. ??? I'm confused. You seem to be redefining the term marginal cost to mean the opposite of what its normal definition is.
- bluesign 6y agoSorry for confusion, second marginal was mistake, I meant even marginal cost is zero, actual cost is not. My main point is even marginal cost is zero, there is another cost ignored (saas service example) If you are ok with to pay 0 when marginal cost is 0, you should be ok to pay X when marginal cost is X. Then this justifies for you to pay marginal cost only. So if we move to physical world, I can say I paid for one iPhone, but if marginal cost of iPhone is half price, so If I bought one, I can steal one.