Microsoft's marginal cost of the 100th copy of Microsoft Windows 10 is
A)the maximum amount that someone is willing to pay for the 100th copy of Windows 10.
B)equal to the marginal benefit from the 100th copy of Windows 10.
C)the opportunity cost of producing the 100th copy of Windows 10.
D)the maximum amount that someone is willing to pay Microsoft to obtain the code that supports Windows 10.
E)greater than the marginal benefit from the 100th copy of Windows 10.

Question

Quizplus · Accepted Answer

Marginal cost is the cost incurred by producing one additional unit of a product. In this case, the marginal cost of the 100th copy of Windows 10 is the opportunity cost of producing that copy, which includes the cost of additional resources used, such as labor and materials, and the foregone opportunities (such as producing a different product). It is not related to the maximum amount someone is willing to pay, the marginal benefit, or the cost of obtaining the code supporting Windows 10. The marginal cost may or may not be greater than the marginal benefit, depending on factors such as market demand and competition.

Microsoft's Marginal Cost of the 100th Copy of Microsoft Windows