The Software Business Is Extremely Profitable Compared to the Ware

question 50

Multiple Choice

The software business is extremely profitable compared to the ware business because:

• A) the marginal cost to produce an additional copy of a software product is effectively zero.
• B) of the lack of market price regulations and guidelines.
• C) software producers serve niche businesses sectors with high profit margins.
• D) software development is a one-time process with no upgrade costs.
• E) software firms benefit from special tax exemptions that aid profitability.