Use the Following to Answer Questions

question 164

Multiple Choice

Use the following to answer questions:
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