Estimation question

How much will it cost for Facebook to add one additional user?

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What this question tests

Cost estimation: breaking down infrastructure and support costs per incremental user for a large scale social platform.

How to approach it

  1. Clarify scope: marginal cost of serving one more active user, not the average cost including fixed overhead like R&D.
  2. List the main variable cost buckets: data storage, compute for feed ranking, content delivery, and customer support.
  3. Estimate each bucket per user per year, for example a few dollars for storage and compute combined.
  4. Add a small allocation for support and moderation costs per user.
  5. Sum the buckets to reach a per user marginal cost, then sanity check against Facebook's known revenue per user for plausibility.

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