code_grey:
It seems, so far from the explanations given, that the cost is entirely a matter of cost of materials and of costs of running machines. Such costs are not hard to quantify, and they will add up to a “production cost”.
False assumptions. In addition to the cost of the machine, you have the rent for the office space, advertising, and other expenses as well. When I was in the documentation industry, the actual cost of the paper was a pretty small percentage of the finished cost.
marginal cost - curving steeply up to the right
short-term average cost - a smiley
demand - straight line dipping to the right
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