Marginal Cost

Language English Español Português العربية Русский 中文

This page answers:How much more does it cost to serve one extra customer? Is this business an asset or a craft?

Fixed cost F —— the one-off investment (production / filming / development / first batch of stock)
Material cost per order —— the extra material spend for serving 1 more customer
Platform commission per order —— when it is not on the platform's fee page, the document says to record it at 10%
Labour minutes per order —— §7 of the document makes this item mandatory (the thing most easily underestimated is your own time)
Your hourly rate —— what one hour of your time is worth
Unit price p —— what a single customer pays
Expected reach —— used for the break-even quantity check (Q has to be ≤ 10% of it)
Z1 Is there a replicable carrier —— can the output exist outside your time (document / recorded video / software / stock / template)
Z3 Quality of the 10th copy —— as a percentage of the 1st copy (the bar is ≥ 80%)
Z4 Customers with repeat demand in the same direction —— the bar is ≥ 20 people
Z5 Channels that can reach strangers —— platform / channel / referral; the bar is ≥ 1
Z6 Your 3 months of disposable surplus —— the bar: the one-off investment ≤ this number

This page judges whether the business can be “replicated at near-zero cost”, not “how much you are making right now”.
The engine follows §4 Step1-3 of the document: it first breaks out v (material per order + commission per order + minutes per order ÷ 60 × hourly rate), then works out the replication ratio R = F ÷ v and the marginal cost share v/p, and then lands in the four-tier table below.
Every threshold of the four tiers comes from 07-边际成本算法.md §4 Step3 (the original table): 🔵 Asset type = R ≥ 20 and v/p ≤ 5% | 🟢 Semi-asset = R 5~20 | 🟡 Craft type = R 1~5 | 🔴 Pure handmade = R < 1。
⚠ Every row of that table in the document gives the range of R and the range of v/p at the same time, and this page requires both columns to line up before it counts as a hit.And R and v/p are mathematically independent of each other (R = F ÷ v, v/p = v ÷ p), so “the two columns not lining up” is the norm: for example F=1000, v=50, p=1000 → R=20 and v/p=5% (they line up, judged 🔵); but F=3000, v=100, p=500 → R=30 and v/p=20% (the first row requires v/p ≤ 5% and the second requires R ≤ 20 → neither column lines up), and also F=5000, v=600, p=400 → R=8.33 (row 2) while v/p=150% (row 4).These cells are not defined in the document, and this page does not pick a row for it: it marks them straight away as “⚠ Not given in the document” and tells you which row R alone falls into and which row v/p alone falls into — the judgement is left to you. You can click those two examples and see for yourself.
In the table below, the row marked “← your input” is the value you filled in; the other four rows are the tier criteria exactly as written in the document.

What this page is / is not
· This page is a “conditions preparation tool”: it works out for you which start criterion is missing, how to fill the gap and what to do first. It is not investment advice, and not business-decision advice; whether you make money also depends on Z4 (someone wants it) and Z5 (the channel) — the document says it in §9 in these words: “low marginal cost ≠ definitely profitable”.
· The thresholds come from an internal methodology document, “Economic Profit Algorithms · 07 Marginal Cost Algorithm v1.0” (domestic machine /opt/inventory/econ_algorithms/07-边际成本算法.md, 157 lines, version fixed 2026-09-14, read-only), with no external empirical testing at all. §1 of the document positions itself as concepts with provenance (marginal cost / economies of scale Marshall 1890 / information-goods cost structure Shapiro & Varian 1999 / learning curve Wright 1936), but those thresholds (20% / 5% / 80% / R ≥ 20 / 10%) are practical lines this methodology set for itself, not authoritative standards.

Evidence chain (the md document has no line numbers, so it is cited to the “section”)
· v = material + commission + (minutes ÷ 60) × hourly rate → from 07-边际成本算法.md §4 Step1
· R = F ÷ v (R ≥ 20 is treated as “replicable”), m = p − v, Q = F ÷ m → §4 Step2
· the four tiers (the two lines R and v/p) → §4 Step3
· Q ≤ 10% of the reachable audience → §4 Step4; expansion order Z5 → Z1 → Z6 → §4 Step5
· the six start criteria Z1–Z6 and their thresholds (v/p ≤ 20%, 10th copy ≥ 80%, ≥ 20 people, ≥ 1 channel, F ≤ 3 months of surplus) → §3
· the conditions preparation checklist and the “first step” text → §5.2 / §5.3

Unaligned / simplified (stated plainly)
· Unaligned ①: every row of the §4 Step3 table gives the range of R and the range of v/p at the same time, but it does not say “which one wins when the two columns do not line up”. This page implements it as “a row only counts as a hit when both columns line up” (R and v/p are mathematically independent, so not lining up is normal); cells that do not line up are marked straight away as “⚠ Not given in the document”, and it lists which row R alone falls into and which row v/p alone falls into. This is a gap in the document, not an omission by this page — this page does not pick a row for it.
· Simplified ①: §4 Step1 of the document gives only the way v is composed and has no door for “enter v directly”, so if one of the four components (material / commission / minutes / hourly rate) is missing, v cannot be computed — this page follows that convention and offers no “enter v only” shortcut.
· Simplified ②: Z1 “there is a replicable carrier” is a one-line judgement in the document; this page turned it into a “yes / no” dropdown; left blank it is treated as “not met”.
· Not done: §3 of the document mentions jumps such as “switch to No. 08 arbitrage / switch to No. 07”, and §8 mentions the links to machine seven's value chain / the octopus / No. 10 compound-interest curve / No. 11 pricing power; this page only links No. 09 (network effect · economic algorithm edition) and No. 11 (pricing power), and the other corresponding pages are not built yet.
· Simplified ③: every threshold comparison carries a 1e-9 floating-point tolerance — for example, with F=1000 and v=50, R is exactly 20 and v/p exactly 5%, which in binary may come out slightly above or slightly below; without the tolerance, an input “exactly on the line” would be judged into the neighbouring tier. The tolerance is only there to line up with the whole-number lines the document gives (20 / 5% / 20% / 50%), and it has not changed any threshold itself.
· Not confirmed: §7 of the document suggests “have an LLM distil your repeated actions into a template catalogue” — this page is pure front-end and is not connected to any model, so that enhancement was not done.

[Evidence section · where to look up every number]
① Source: internal methodology document 07-边际成本算法.md v1.0 (domestic machine /opt/inventory/econ_algorithms/07-边际成本算法.md, 157 lines, read-only): start criteria Z1–Z6 = §3; cost breakdown / R and Q / the four tiers / break-even quantity / expansion order = §4 Step1–Step5; preparation checklist and first step = §5.2 / §5.3. §1 of the document gives the concept provenance (Marshall 1890; Shapiro & Varian 1999, DOI 10.2307/1183273; Wright 1936, DOI 10.2514/8.155).
② Three categories
· [Verifiable] v = 材料 + 抽成 + 分钟数÷60×时薪, R = F÷v, m = p−v, Q = F÷m, the four tiers (🔵 R≥20 and v/p≤5% / 🟢 5~20 / 🟡 1~5 / 🔴 <1), Q ≤ 触达人群 10%, the expansion order Z5→Z1→Z6 — all of them line up with §4 Step1–Step5.
· [This page's display convention] The “← your input” row in the four-tier table is assembled by the page; and the 1e-9 floating-point tolerance that every threshold comparison carries is a page implementation (it does not change the thresholds themselves).
· [No source found] The numbers R≥20 / v/p≤5% / 20% / 50% / 10% / ≥80% / ≥20 people / ≤ 3 months of surplus have no external provenance in the md (§1 gives only the concept provenance, not the numeric provenance) → no source found (internal practical lines).
③ How to check it yourself: F=1000, material 50 (all other components 0) → v=50; unit price p=1000 → R = 1000/50 = 20, v/p = 5% → both columns hit row 1 → it should be judged 🔵 asset type. Then F=5000, material 600, p=400 → R=8.33 falls in row 2 while v/p=150% falls in row 4 → it should show “⚠ Not given in the document” (this page does not pick a row for the document).

What you can do next

Pricing Power

How to sell the same thing for more: see how many tiers of buyer you can split out, and which condition you are missing

Why this link: This page outputs unit_cost, and this slice takes unit_cost as its input

Network Effect · Local Critical Mass

Judge whether a user relationship is a real network effect, work out the penetration inside one circle, and see which condition is missing

Why this link: Follow-on picked by hand (network-effect-econ)
Generated by /opt/slices_build/build.py from the spec /_shared/slices/marginal-cost.json — to change this page, edit the spec and re-run the generator; never hand-edit the HTML.