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If I walk by a stand, it cost them something to give me their homemade crafts for free(they have less to give away)

With software development the only thing lost with giving it away for free is the opportunity cost that someone might have paid for it.

So I don't think physical products and software can be compared like that

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Do you think that software comes out of thin air? It takes time and effort to develop and maintain software. The fact that it doesn't cost to reproduce it doesn't mean it doesn't cost to create it in the first place.

And it takes time and effort to develop the method for creating the crafts.

That doesn't change that they're different in reproducibility...

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