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A Company That Formerly Produced Software Went Out of Business

question 312

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A company that formerly produced software went out of business because too many potential customers bought illegally-produced copies of the software instead of buying the product directly from the company.This instance serves as an example of


Definitions:

Marginal Revenue

The additional revenue gained from selling one more unit of a product or service.

Downward-Sloping Demand

Describes a market phenomenon where a product's demand decreases as its price increases, according to the law of demand.

Price

The expenditure involved in buying a good or service.

Demand Curve

A chart that depicts the link between a product's price and the amount of the product that buyers are prepared and capable of buying at various price points.

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