Compared to traditional goods, digital goods incur:

Question

Quizplus · Accepted Answer

Digital goods do not require physical distribution, so distribution costs are significantly lower compared to traditional goods. Additionally, once the initial creation costs are covered, the marginal costs of producing additional digital copies are minimal. This means that the marginal cost per unit is lower for digital goods compared to traditional goods. Furthermore, digital goods do not require inventory costs because they can be stored electronically. However, copying costs for digital goods can be significant, especially if measures to prevent unauthorized copying are not implemented.

Compared to Traditional Goods, Digital Goods Incur