

Saying You Can't Compete With Free Is Saying You Can't Compete Period - ThomPete
http://techdirt.com/articles/20070215/002923.shtml

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fnid
The problem with this post is that it neglects recouping non-marginal costs.
If the factory costs you $100 Million to build and you sell the cars for
$20,000, which is the marginal cost, how are you going to recover the $100
Million?

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jsankey
This is even more glaring in the flawed movie analogy. Consumers of movies are
not just paying for the experience of the movie. The movie itself is the main
distinguishing factor. There is no "perfect competition" across all movies as
the article seems to imply by limiting the differentiating factors to things
surrounding the movie itself.

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ippisl
Another problem with this post , is that it goes under the assumption that
prices in a competitive market becomes the marginal cost. but price in the
competitive market goes towards the marginal costs. there's still some profit
margin even in competitive businesses like walmart , commodities markets,
netbook markets .

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kiba
It is talking about digital goods, not physical goods like walmart, oil,
netbook, etc.

Also, from what I understand, Masnick does understand that prices in a
competitive market will go toward marginal cost.

