[gjm11]

The cost of 1GB of extra RAM is $20 in a certain range, namely where your system fits fairly comfortably on a single machine.

Once you get past a certain level, though, the cost of the next 1GB isn't $20, it's $20 plus the cost of another computer plus the cost of exploiting multiple machines rather than just running on a single one.

Then it's $20/GB for a while again, then $20 plus the cost of adding another machine, and at a certain point you need to add the cost of dealing with the fact that performance isn't scaling linearly with amount of hardware any more.

That last bit might be a concern only in fairly rare cases. But the first, where you make the transition from needing one machine to get the job done to needing more than one, isn't so rare. And that can be a big, big cost.

(Very similar considerations apply to CPU time, of course. Typically more so.)