Which of the following statements is true about marginal costs in high-technology industries?
A) They are invariably higher than fixed costs.
B) They are the costs that customers need to bear in order to adopt a new technology.
C) They include the costs of packaging and product distribution.
D) They are extremely high in software-making companies.
E) They do not exist if the product is sold by a sales force directly to end-users.

Question

Quizplus · Accepted Answer

Marginal costs in high-technology industries, such as software, often include costs like packaging and distribution, but they are typically low compared to fixed costs like development.

Which of the Following Statements Is True About Marginal Costs