Between 2007 and 2009,Microsoft Spent Close to $25 Billion on R&D,the

question 10

Multiple Choice

Between 2007 and 2009,Microsoft spent close to $25 billion on R&D,the majority of which went to its new Windows 7 operating system.These costs were fixed.However,after Windows 7 hit the market,the marginal costs were basically zero.Since Microsoft expects to sell several hundred million copies of Windows 7,it can be said that:

• A) Microsoft has a competitive advantage because it has already spent the capital required for its new offering.
• B) Microsoft has a competitive advantage because it will be able to drive down per-unit costs of Windows 7 with each additional copy it sells.
• C) Since Microsoft will sell so many units of Windows 7, it has attained competitive parity within its strategic group.
• D) Microsoft will be at a competitive disadvantage unless it exceeds its sales forecasts because its marginal costs will change.

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Definitions:

Meiosis

Meiosis is a type of cell division that reduces the chromosome number by half, resulting in the production of haploid gametes or spores.

Fertilization

The process of combining male (sperm) and female (ovum) gametes to form a zygote, initiating embryonic development in sexually reproducing organisms.

Sporogenesis

The process of spore formation, especially in fungi, algae, mosses, and ferns.

Bacteria

Single-celled microorganisms that can exist either as independent organisms or as parasites, some of which can cause diseases.