Software development is an expensive process, but manufacturers are able to spread out the costs of the development over the hundreds of thousands of software packages sold to consumers. What is helping to drive down costs per unit in this situation?
A) antidumping measures
B) economies of scale
C) diminishing returns
D) labor productivity
E) first-mover advantages

Question

Quizplus · Accepted Answer

Economies of scale help drive down costs per unit as the fixed costs of development are spread over a large number of units sold, reducing the cost per unit.

Software Development Is an Expensive Process, but Manufacturers Are Able