How do economies of scale work in the music industry? What are first-copy costs??

What will be an ideal response?


ANSWER:
Economies of scale occur when producers make so many copies of something that they learn how to make each of those copies more cheaply. Economies of scale work when a musical product can be marketed to a large number of consumers, because the marginal costs of producing CDs are fairly low. First-copy costs include all the costs of producing and marketing the musical product. The marginal costs cover making additional copies of the CD and distributing them.?

Communication & Mass Media

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Communication & Mass Media