The Cost of the Next Unit Is Going to Be Rising

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Cost of the next unit might be rising because you have to produce more and more. The other type of good has very, it's often called a natural monopoly. It has a very high fixed cost and low marginal cost. And so price is going to have to rise as the business gets bigger.

Economist and author Arnold Kling talks with EconTalk host Russ Roberts about the recent drama in the tech world--Elon Musk's acquisition of Twitter, the collapse of FTX, and the appearance of ChatGPT. Underlying topics discussed include the potential for price discrimination to make social media profitable, whether you could tell Jeff Bezos from Sam Bankman-Fried early on, and the role of human beings in the world of artificial intelligence.