I believe they are referring to marginal costs. Yes, with economies of scale can become cheaper to produce, but they still require capital to reach that scale.

I believe they are referring to marginal costs. Yes, with economies of scale can become cheaper to produce, but they still require capital to reach that scale. https://en.m.wikipedia.org/wiki/Marginal_cost https://en.m.wikipedia.org/wiki/Marginal_cost