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Comment by kelvinjps | Hacker News Reader
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kelvinjps
·
How they can offer games for so low?
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jonny_eh
·
The cost per unit is 0. Once they’ve sold a game at full price to anyone that will pay, they can lower the price to near 0 to capture any remaining demand along the curve.
33W
·
Yup! The term is marginal cost:
https://en.m.wikipedia.org/wiki/Marginal_cost
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