Why tech companies can’t stop growing

In the age of the automobile and mass production, companies were obsessed with economies of scale. At some point they had to stop growing because the marginal cost of production was too high. By contrast, in the age of computing and networks, companies pursue increasing returns at scale: the more they grow, the easier it gets. Even when tech companies operate tangible assets that have diminishing returns (a fleet of cars, factories), they still generate increasing returns with what I call…

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