Microsoft Lets You Have Their Software, Internet Explorer

question 46

Multiple Choice

Microsoft lets you have their software, Internet Explorer.By what you know about marginal cost how can they do this and stay in business?

• A)They went out of business because of this.
• B)The marginal cost of distributing an extra unit of software is very close to zero.
• C)The marginal cost is high but they do it anyway.
• D)They are covering their fixed costs.
• E)They now charge for Internet Explorer.

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Definitions:

Productivity

The measure of how efficiently goods and services are produced, often evaluated as the output per unit of input, such as labor or capital.

Living Standards

The amount of prosperity, comfortability, tangible assets, and essentials afforded to a distinct socioeconomic bracket or area.

Real Economic Growth

An increase in the economic output of a country adjusted for changes in the price level (inflation), indicating an expansion in the economy over time.

Technological Growth

The process of innovation and introduction of new technologies and methods, which improves efficiency and productivity.