Elon Musk Uses Economies of Scale & Vertical Integration to Revolutionize Auto Industry
When economics professors explain the concept of an industry with high “barriers to entry,” the examples they usually reach for are automobiles and space flight. Setting up a lemonade stand (or, these days, a software company) may be child’s play, but the complexity and massive capital requirements of the “metal-bending industries” have kept them more or less closed shops for as long as they’ve existed.