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  • May 8th, 2014 @ 8:29pm

    Re: Re:

    So what exactly are the other goods that music or prescription drugs are inputs for? These isn't iron ingots or yards of cloth, these are end-user goods, and are consumed (in some cases literally).
    Life. Or if that is too touchy-feely for you: productivity. Music enhances my life and increases my productivity (in part because of my choice of music, admittedly); prescription drugs may make the difference between life, and death = zero productivity (zero again!)--arguably negative productivity since the body must be rendered biohazard-safe (yes, a real issue with MRSA!) So, these are inputs to life/productivity, i. e., everything!

    Bonus question: So, what kind of society legislates to allow a lowering of productivity? (A failing society, IMNSHO.)

    Consider EA: Considering the cost of server development and their abysmal initial performance, were they better off than creating SimCity [5] along proven lines without coercive DRM? I will probably never buy SC5 (despite buying all privious versions), however low it's priced, since it does not provide the same experience as other SC versions. Lose for EA!
    And stop harping about "zero". Even digital music's marginal cost is not zero, just really small. The result of the "flip side" is not infinite, but just very big.
    As Mike suggests, some things are effectively infinite, or zero. Do you know of a company that tracks capital investments down to individual paperclips? If so, I suggest shorting that stock. Some things are so cheap, they are less valuable than the cost to track their cost. Consider the hoody/T-shirt and mug business model: would music companies have been more profitable making friends with their customers instead of demonizing (some) of them? Cable companies are similar: I'll do anything to defeat them; they can try suing YouTube/Google or Netflix, or my public library, which carries DVDs and CDs as well as books--good luck with that!

    Zero. What is the cost of watching surf or a sunrise or sunset? Zero. Except for attention/opportunity cost; a cost of every product. The business/standard accounting cost is zero; not a fraction of a mil more.

    Really important point here: Accounting is not Economics! Any politician who harps on accounting or I-ran-a-business should be ignored--they do not have a ghost of a clue.

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