On better tools and worse products.

A thought model:
High quality tables cost 500 €.
Low quality tables cost 100 €.
For both kinds of tables sawing the wood for it costs 50 €.
For both kinds of tables the budget is fixed at 1.000.000 €.
Therefore 2.000 high quality tables get sold.
Therefore 10.000 low quality tables get sold.
Therefore ~ 17% of all tables sold have high quality.

Now a saw manufacturer invents a new saw which is so efficient that it reduces the cost of sawing the wood for a table to 25 €.
This reduces the cost of a high quality table to 475 €.
Therefore 2.105 high quality tables get sold.
Also this reduces the cost of a low quality table to 75 €.
Therefore 13.333 low quality tables get sold.
Therefore ~ 14% of all tables sold have high quality.

So in this thought model improving a tool lowers the average quality of the products made with it.

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