FenrirIII@lemmy.world to Work Reform@lemmy.world · 6 months agoRational Self Interestlemmy.worldimagemessage-square19fedilinkarrow-up11arrow-down10
arrow-up11arrow-down1imageRational Self Interestlemmy.worldFenrirIII@lemmy.world to Work Reform@lemmy.world · 6 months agomessage-square19fedilink
minus-squareUmmdustry@sh.itjust.workslinkfedilinkarrow-up0·6 months agoI mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.
minus-squarepearsaltchocolatebar@discuss.onlinelinkfedilinkarrow-up0·6 months agoNo, you never will without increasing prices to cover the additional overhead of increased production. Remember, only the machine is doubling efficiency, but operations has to increase to handle the new output and resources required.
minus-squareUmmdustry@sh.itjust.workslinkfedilinkarrow-up0·6 months agoBut some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
minus-squaretrolololol@lemmy.worldlinkfedilinkarrow-up0·6 months agoNot if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.
I mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.
No, you never will without increasing prices to cover the additional overhead of increased production.
Remember, only the machine is doubling efficiency, but operations has to increase to handle the new output and resources required.
But some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
Nor does demand for your product.
Not if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.