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I'm pretty sure the basic assumptions of the economics y'all are discussing are not met because they require concave production functions. According to micro theory (I'm trying to recall Mas-Colell here so maybe way off), a linear production function as we have with internet distribution results in corner solutions of 0 or infinite production, and either way can't be priced (taking record production to be a sunk cost, which it is by common definition).

Point being, any argument that relies on a micro framework is bunk because we've reached a level of technology where convex production sets are no longer an obvious assumption.



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