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That's a false analogy. 10 separate factories in their example would be 10 separate cities each with 10k people, not 1 large city with 100k people.
by fighterpilot 5y ago
That's a false analogy. 10 separate factories in their example would be 10 separate cities each with 10k people, not 1 large city with 100k people.
- beerandt 5y agoThat's not how you reach economies of scale.
- fighterpilot 5y agoWe all know that. Their point was that you get linear scaling using that approach, which disproves the notion that you can't get linear scaling.
- beerandt 5y agoLinear scaling of any project large enough to disrupt an industry (as is being suggested here) is a pipe dream. When you are trying to scale up something that big, you eventually get beyond economies of scale for the required infrastructure and feedstock, and as a result, increase overall demand, which raises prices. You only get near-linear scaling for a very short, initial "ramp-up" period. Beyond that, you start cornering markets, which makes prices spike, not decrease or even hold steady.