4 ms·
> Economies of scale. In particular, often total costs are a combination of fixed and variable costs. The more output, the more the fixed costs can be amortized
by android42 3y ago
> Economies of scale. In particular, often total costs are a combination of fixed and variable costs. The more output, the more the fixed costs can be amortized, lowering average cost.
Except that after a certain point total costs increase again as the raw inputs become more scarce and expensive to obtain.
- zeroCalories 3y agoIf resources becomes scarce, don't worry. We've just crashed the market on human value, so we can make up for it with lower wages and longer hours.
- Sammi 3y agoThen we should grow so we can mine asteroids.