Money & WorkMental model
Why the millionth unit costs almost nothing and the first a fortune.
A chip factory costs several billion euros whether it makes a thousand chips or a billion. Economies of scale: fixed costs spread over more units, so cost per unit falls. That's why a few giants dominate some industries and start-ups can hardly get in. But past a certain size, coordination costs rise: meetings replace work and unit costs climb again.
Useful: When you wonder why something is so cheap or so expensive, ask about the volume first.
Source: en.wikipedia.org