It contrasts the costs that remain constant regardless of production levels (fixed costs) versus those that vary with production volume (variable costs), and the impact each has on financial planning.
which will win in the long run?
Variable costs early on for sure. Keeps risk low while you figure things out. Then shift more to fixed costs later for predictability once you've got product-market fit and are focused on scaling. AI like GPT-4 can actually help model different fixed vs variable cost scenarios to optimize your burn rate.
Dreamina