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> marginal cost of production equal to zero

I think it would be more correct to write "reproduction" or "distribution", because it costs a lot to produce a movie or a book or a big, complex piece of software.

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Marginal cost does not include initial investment. https://en.wikipedia.org/wiki/Marginal_cost

It seems like you're miscommunicating over where to delineate the product. You are right that the marginal cost of the Nth copy of a particular film is about zero. The marginal cost of making the Nth film is still decidedly nonzero.

Right and in any event it's ridiculous to talk about a "post scarcity" world when there is oodles of scarcity surrounding the creation of information goods like movies.

That's exactly what Marginal cost is, the change in total cost to produce one more copy of the same product.

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