FenrirIII to Work Reform@lemmy.world • 7 months agoRational Self Interestlemmy.worldimagemessage-square21fedilinkarrow-up1376arrow-down113cross-posted to: comicstrips@lemmy.world
arrow-up1363arrow-down1imageRational Self Interestlemmy.worldFenrirIII to Work Reform@lemmy.world • 7 months agomessage-square21fedilinkcross-posted to: comicstrips@lemmy.world
minus-square@Ummdustry@sh.itjust.workslinkfedilink3•7 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-square@pearsaltchocolatebar@discuss.onlinelinkfedilink1•7 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-square@Ummdustry@sh.itjust.workslinkfedilink2•7 months agoBut some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
minus-square@Ummdustry@sh.itjust.workslinkfedilink1•7 months agoAgain this is a case of “it depends”. If you are not a market driver then yes it does. (‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )
minus-square@trolololol@lemmy.worldlinkfedilink1•7 months agoNot if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.
minus-square@pearsaltchocolatebar@discuss.onlinelinkfedilink1•7 months agoThe labor costs aren’t going away, just shifting. You have to increase employment in other areas to handle a 100% increase in product output. Besides the fact that labor costs are rarely a large enough portion of a manufacturer’s budget to make that big of a difference.
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.
Again this is a case of “it depends”. If you are not a market driver then yes it does. (‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )
Not if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.
The labor costs aren’t going away, just shifting. You have to increase employment in other areas to handle a 100% increase in product output.
Besides the fact that labor costs are rarely a large enough portion of a manufacturer’s budget to make that big of a difference.