Figure: Demand and Marginal Revenue (Figure: Demand and Marginal

question 96

Multiple Choice

Figure: Demand and Marginal Revenue (Figure: Demand and Marginal Revenue) The figure Demand and Marginal Revenue refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade; the marginal cost of allowing consumers to download the upgrade is zero.What is the efficient level of output for the upgrade?

• A)0
• B)80,000
• C)125,000
• D)250,000

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Definitions:

Digital-to-analog Converter

An electronic device that converts digital signals into analog signals, often used in music players and video systems.

Analog-to-digital Converter

A device or process that converts analog signals, such as sound and light, into a digital form that computers can understand and process.

Copyleft

A licensing concept that allows for the free redistribution and modification of creative works, provided that all copied and modified versions are also free.

Digital Rights Management

Digital Rights Management (DRM) is a set of access control technologies aimed at protecting copyrights by restricting the use and distribution of digital content.