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With respect, Taylor514ce, what affects the price of electronic books is supply and demand. The cost of infrastructure and labor has an indirect effect on supply, but so do a lot of other factors, in particular the opportunity costs of deploying capital on e-books rather than, for example, trade paperbacks.
If trade paperbacks sell for a lot, it makes little sense to spend on the necessary infrastructure and labor to produce e-books, unless you also can sell them for a lot. So I think Mr. Wolf is correct in saying that the higher cost of trade paperbacks pushes up the cost of electronic books.
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