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By the definition, software isn't an economy of scale. Unit cost doesn't decrease by magnitude as output increases. A utility company is an example of economy o
by edge17 4y ago
By the definition, software isn't an economy of scale. Unit cost doesn't decrease by magnitude as output increases. A utility company is an example of economy of scale.
- cuteboy19 4y agoCreating GitHub.com takes the same amount of time whether they have 1k customers or 1M customers
- throwaway14356 4y agoor creating 1000 gihubs
- treasurebots 4y agoEconomies of scale don’t just have to be areas where unit marginal costs decrease as volume increases, they can also be areas where fixed costs dominate marginal costs, which is the case for many software firms because marginal costs are usually very small
- slavik81 4y agoEconomies of scale exist when the average cost decreases as the number of units increases. The average cost for N units is the sum total of all fixed and per-unit costs divided by N. https://en.wikipedia.org/wiki/Economies_of_scale https://en.wikipedia.org/wiki/Economies_of_scale