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Application Programming Interfaces (APIs) allow software on different devices and systems to talk to each other.

The Economics of API Ecosystems and Modular Innovation

Today, Application Programming Interfaces (APIs) and modular software development allow for widespread and rapid improvement of programs and apps. How has the macro economy changed by this recent shift toward interoperability and add-on upgrades in software?...
4 min read
Business economics

Productivity answers

Saddique Ansari • January 29, 2019 • 1 min read

Author bio

WORKERS TOTAL PRODUCT AVERAGE PRODUCT MARGINAL PRODUCT
1 6 6
2 16 8 10
3 28 9.3 12
4 42 10.25 14
5 56 11.12 14
6 66 11 10
7 69 9.8 3
8 70 8.7 1
9 69 7.6 -1

Answer
Assuming one factor is fixed, the addition of extra workers will result in increasing returns followed eventually by diminishing returns.


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Content creators may seem independent and carefree, but almost all of them must heed the whims of large conglomerates.

Creator Economies and Monopsony Power

Many people aspire to be influencers and content creators for the shot at freedom and creativity while earning an income. But the market for content creators is far closer to a monopsony than many people realize. If you want to earn an income, only a handful of social media giants can offer it....
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