Microsoft's marginal cost of the 100th copy of Microsoft Windows 8 is
A)the maximum amount that someone is willing to pay for the 100th copy of Windows 8.
B)equal to the marginal benefit of the 100th copy of Windows 8.
C)the opportunity cost of producing the 100th copy of Windows 8.
D)the maximum amount that someone is willing to pay Microsoft to obtain the code that supports Windows 8.
E)greater than the marginal benefit from the 100th copy of Windows 8.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one more unit of a good or service. In this case, the 100th copy of Windows 8 is one more unit being produced, therefore the marginal cost is the opportunity cost of producing that unit.

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