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I know very little about economy, but "you can't make up losses on volume" does not sound right. Let's say you have fixed costs F per year and you make a profit
by auggierose 13y ago
I know very little about economy, but "you can't make up losses on volume" does not sound right. Let's say you have fixed costs F per year and you make a profit of P per user. Then as soon as numUsers * P >= F, you made up your losses on volume.
- Shish2k 13y ago> you make a profit of P per user I believe the point of the quote is that they're making a loss per user
- Noughmad 13y agoThese are not losses. Losses are, as in Twitter's case, when P is negative.
- sokoloff 13y agoGP is surmising the case where marginal profit per user is positive, even though average profit per user is still negative. IOW, calling it I, net income per user, would have made the argument more clear.
- mkmkmmmmm 13y agoBy golly you are right! They just need a complex count of users and negative complex profit and the result is positive!