Microsoft Sells a Special Version of Its Windows Operating System

question 5

Multiple Choice

Microsoft sells a special version of its Windows operating system at a low price in countries where cheap pirated software is widespread. Since the cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product, why is Microsoft charging this lower price?

• A) It is trying to take advantage of the different demand elasticities in the different countries.
• B) The price differential is explained by the lower cost to develop the new software.
• C) The price differences are due to differences in cost among countries.
• D) The differential pricing reflects the differences in the barriers to entry.

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Definitions:

Vitamin D

A group of fat-soluble secosteroids responsible for increasing intestinal absorption of calcium, magnesium, and phosphate.

Marine Mammals

A diverse group of roughly 120 species of mammals that are primarily ocean-dwelling or depend significantly on aquatic ecosystems for their survival.

Calcium Homeostasis

The regulation of calcium levels in the blood within a narrow range, crucial for various physiological processes including bone formation, blood coagulation, and muscle contraction.

Vitamin D

Vitamin D is a fat-soluble vitamin essential for healthy bones and immune function, obtained from sunlight exposure and certain foods.