Re: "Bill makes all the important decisions here."

Seth Golub (
Sun, 18 Jan 1998 16:24:01 -0800

Mike Masnick <> writes:

> A good that is non-depletable and non-excludable has a marginal cost
> of zero because it does not cost the producer anything more to
> produce it for the marginal user. Therefore, the price to the
> consumer should be zero, if there is economic efficiency (brought
> about by competition).

This came up a few giggles short on my laugh-o-meter, so I thought I'd
respond to it seriously, just to get me through the day.

Even if it costs nothing to produce a good, it may (and in this case
does) still cost something to distribute. The resources required to
serve content to a million readers a week do cost more than the those
required to serve content to five readers a week.

Of course, it does cost to produce the content in the first place.
That cost can be spread over all the consumers, but it won't hit zero
per consumer until you have an infinite number of consumers, which
even Bill isn't planning on any time soon.