Since the popular video game Grand Theft Auto IV cost more than $100 million to develop,:
A) marginal cost pricing of $1 per game will most likely generate an unsuitable return on investment.
B) pricing above marginal cost will not create deadweight losses because of the large development costs.
C) pricing above marginal costs is not necessary to earn above-normal profits.
D) marginal revenue will be negative on the first 100 million games sold.

Question

Quizplus · Accepted Answer

Marginal cost pricing of $1 per game would not cover the high development costs, making it unlikely to generate a suitable return on investment.

Since the Popular Video Game Grand Theft Auto IV Cost