graeme_p - 6:31 am on Mar 19, 2011 (gmt 0)
@Sylver you claim you can manufacture a car for $1,000? That is plain wrong. Cars are not made from raw materials in a few hours. They contain thousands of parts, many of which are expensive to make.
Have you looked at car manufacturers gross margins? Most of the cost of a car goes in parts and direct labour. Then take out the long run costs of manufacture (plant and equipment).
It might be that you can set up a car factory dramtiacally more efficient that, for example, Toyota's, but I somehow doubt it.
In economic terms the marginal cost of production of a car is most of its selling price, the marginal cost of an ebook is near zero.