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Originally Posted by DMcCunney
There is a unit cost for ebooks.
As mentioned previously, 80% or more of the costs of producing a book are incurred before it ever reaches the stage of actual publication. For a printed book, the other 20% of the costs are in printing, binding, warehousing, and distribution. You drop those costs with an ebook, but you don't drop all the other costs that are incurred up to that point.
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No, those are fixed costs, not variable.
'Printing' an extra 1000 eBooks does not cost you a measureable amount of money.
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So there will be a unit cost, in the form of an allocated share of the costs of producing the book, that will decline as more copies are sold but won't simply go away.
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The fixed costs are fixed. Everything else is accountancy.
The amount allocated to each copy will change, but the overall amount will not. It does not cost you more money to sell more copies, unlike with physical objects. Therefore there is not the measureable minimum price that there is with a physical object where it can be sold to break even.