3 ms·
> Overhead costs per unit decrease as a company grows. This is correct to an extent, at Arizona's size it is wrong. It would cost them a lot to increase produc
by colinmhayes 5y ago
> Overhead costs per unit decrease as a company grows.
This is correct to an extent, at Arizona's size it is wrong. It would cost them a lot to increase production.
- kube-system 5y agoSure, technically speaking, it’s not an infinitely vertical line, it has an lower and upper terminus, and might begin again at another y value. But we’re already misusing the model to begin with. The line is intended to represent multiple suppliers participating in a market for a good with a fungible source. It is not and never has been a model for pricing decisions at a single company.