this post was submitted on 01 Mar 2024
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Work Reform

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[–] pearsaltchocolatebar@discuss.online 8 points 7 months ago* (last edited 7 months ago) (9 children)

Just one caveat - if you double production, you're not doubling your income or profit.

[–] Ummdustry@sh.itjust.works 4 points 7 months ago (6 children)

I mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.

[–] pearsaltchocolatebar@discuss.online 0 points 7 months ago (5 children)

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.

[–] Ummdustry@sh.itjust.works 0 points 7 months ago (1 children)

But some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc...) do not scale with increased output.

[–] moody@lemmings.world 0 points 7 months ago (1 children)

Nor does demand for your product.

[–] Ummdustry@sh.itjust.works 1 points 7 months ago

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. )

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