I've been wracking my brain trying to understand the article. Yes, "just take the limit" was my initial reaction too. But I think (maybe) the author is further

I've been wracking my brain trying to understand the article. Yes, "just take the limit" was my initial reaction too. But I think (maybe) the author is further arguing that the race to the bottom will squeeze the bottom line, which will suffocate competition until only the strongest remains. At this point, the market is a monopoly (which we all know is the root of all evil). Incidentally, diminoten points out that replication is free, rather than production. The industries undergoing the cost squeeze which the article specifically mentions (knowledge, news and entertainment) are in the replication business. Therefore, leveraging marginal costs is literally their business model. But I expect the cost of creation will remain more or less constant. In other businesses like manufacturing, this is equivalent to economies of scale, except manufacturing produces the first copy and replicates subsequent copies. So while music corporations might eventually go totally bankrupt, musicians will continue producing music while uploading for free, and I expect manufacturing will continue manufacturing widgets (even if it comes down to a monopoly).