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

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit. In this case, the marginal cost of the 100th copy of Windows 10 would be the cost of producing just one more copy after the 99th. This cost includes the materials, labor, and other resources required to produce the 100th copy. The opportunity cost refers to the cost of the next best alternative foregone. In this case, producing the 100th copy of Windows 10 means that resources cannot be used for another purpose like producing another product. Therefore, the marginal cost of the 100th copy of Windows 10 is the opportunity cost of producing it.

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