The information economy is characterized by low to zero marginal cost of information once the fixed cost has been incurred.

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The economics of offering TV channels are not the same as long distance (which has a marginal cost of zero more or less) and so there are clouds on the horizon.

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When in three years time, 50 million American cars have this feature (and another 50-100 million overseas), the marginal additional cost will probably be zero.

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The first is that the marginal cost of such products is close to zero.

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Or if you prefer, the marginal cost of one more unit of production is near zero.

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All intellectual property violates the efficiency rule that price should equal marginal cost of reproduction, which for knowledge is nearly zero.

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In formal terms, the consumer has an incentive to spend until the marginal benefit of additional spending, or additional health care is zero, so different from an efficient market, where consumers spend until the marginal benefit is equal to the marginal cost.

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Remember, the marginal cost to a network of either a new customer or more data for an existing one is essentially zero.

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