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> Even if you have a monopoly, your profit maximizing quantity is determined by where marginal revenue matches marginal cost. Yes, and we established that the
by slg 4y ago
> Even if you have a monopoly, your profit maximizing quantity is determined by where marginal revenue matches marginal cost.
Yes, and we established that the marginal cost is near zero so the profit maximization strategy depends entirely on the shape of the demand curve. AGI isn’t going to have a linear demand curve because it’s value to me is not proportional to its value to a billionaire. The curve with have an exponential shape and therefore setting a higher price can potentially yield more profit than a lower price.