Ah, yes, the marginal cost of production concept. Put simply, to maximize profit, one must produce and sell product up to the moment the last widget produces exactly zero profit.
So, extending that service voluntarily unnecessarily adds some cost, which in theory means some of their widgets produce negative profit. That is unacceptable to the shareholders.
Ah, yes, the marginal cost of production concept. Put simply, to maximize profit, one must produce and sell product up to the moment the last widget produces exactly zero profit.
So, extending that service voluntarily unnecessarily adds some cost, which in theory means some of their widgets produce negative profit. That is unacceptable to the shareholders.