The capitalist economic theory states that if consumer demands for goods grows, producer / seller will raise the prices. If the prices get too high, demand will drop, forcing seller to reduce prices.
New technologies increase productivity, allowing the seller to produce more goods at a lower unitary cost.
Suppose we carry these assumptions to the extreme, to the so called ?optimum general welfare?, a point where the competition forces lead to extreme productivity where the cost of producing an additional unit ? if fixed costs are not considered ? becomes essentially zero.
If that were to happen, a world where most goods and services are nearly free and profit is dead, a new economic life needs to be considered.
Considering this, the question I want you to answer is: why some authors claim that ?digital? will be the end of capitalism?
I would like, max 1 page (400-500 words), to receive your view on this topic before next session.
Please I prefer online sources to be cited please
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Discipline: DIGITAL ECONOMICS & BUSINESS MODELS
