And 80% of statistics are made up on the spot.
(Would be interested in any links to studies or economic models in this area though.)
(Would be interested in any links to studies or economic models in this area though.)
It’s sort of a backwards way of thinking about the “Marginal Abatement Cost Function” (MAC) which is non-linear at the point you decide to go from producing 1 unit of output to shuttering the factory entirely.
At the point where you are producing 36 million phones, the marginal economic cost is at its lowest. The marginal economic cost of your first unit, by comparison, is a massive step function.
Which is why I started by saying it’s a morose way of looking at things, because you get stuck in a local minimum that way.