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submitted 6 months ago by schizoidman@lemmy.ml to c/evs@lemmy.world
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[-] dondelelcaro@lemmy.world 6 points 6 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.

[-] PersnickityPenguin@lemm.ee 4 points 5 months ago

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

More units = more economy

this post was submitted on 13 May 2024
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