> In a busy season at work more people work overtime, which is a very simple a marginal cost that increases with production. It's not a marginal cost, it's yet

> In a busy season at work more people work overtime, which is a very simple a marginal cost that increases with production. It's not a marginal cost, it's yet another incremental upfront cost: you usually pay your employees to stay an hour more, you don't pay them some amount of money depending on how many things have been sold over the said hour. The last, emphasized part, is the key: the fundamental realization of the marginal revolution is that value isn't created when something is manufactured (which was Ricardo's labor theory of value) but when someone found it useful enough to buy it (that's marginal theory of value). > If we have a sudden surge in production, suppliers can get us goods much faster than usual but only if we pay more, another marginal cost, no? Marginal cost is about how supply volume, not speed, incurs costs, so it's irrelevant. Most of the time suppliers give you a discount the more stuff you buy at once by the way. > If there is not marginal cost, then there is never decreasing economies of scale, I don't know how you get to such a conclusion, if average cost goes up, there you go.