• @dondelelcaro
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    67 months ago

    This is why the incremental cost of a unit are often a better measure for longer term profitability and decision making than the unit average cost, especially when you aren’t factoring in the market size and ability to repurpose sunk costs in that unit average cost.

    • @[email protected]
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      fedilink
      47 months ago

      Exactly, which is where the term “economies of scale” comes from.

      More units = more economy