Software Development Has High Fixed Costs and Marginal Costs That

question 44

Multiple Choice

Software development has high fixed costs and marginal costs that are close to zero. What would happen if software firms sold their product for marginal cost?

• A) They would have the incentive to produce new software programs.
• B) They would produce better software.
• C) They would increase their profits.
• D) They would not be able to afford their fixed costs and would go out of business.

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Definitions:

Reproductive Potential

The maximum capacity of an organism to reproduce under optimal environmental conditions.

Economic

Pertaining to the production, consumption, and transfer of wealth within a society or geographical area.

Maleness-femaleness

The continuum of attributes that distinguish between the characteristics traditionally associated with males and females.

Gender-typed Products

Gender-typed products are items that are specifically marketed or designed for use by individuals of a particular gender, based on societal norms or stereotypes.