Quote:
Originally Posted by Fugee
It's simple marketplace reality. I had a client that was a large, but not ginormous retailer. Target and Walmart could sell electronics for less than the wholesale price my client paid.
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This response is beyond stupid, even for you.
EATA: Also,
record companies have strong incentives not to let online music be too cheap.
Quote:
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I consider the ability to spread required fixed costs over a large number of units part of "economies of scale." Why don't you?
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ETA: Okay, my initial response was unfair. It really depends minimum efficient scale. I'm assuming that a new online retailer doesn't need all the fixed costs that itunes does (i.e., it doesn't need as many servers).
