The marginal cost of the production of information goods distributed over the Internet is zero or near zero.

Question

Quizplus · Accepted Answer

The marginal cost of producing and distributing information goods through the internet is extremely low or practically zero. This is because the production and distribution of information goods do not require any physical resources or inputs. Once the content is created, it can be replicated infinitely without incurring any additional cost. The only cost involved in the production of information goods is the initial cost of content creation, software development, and server maintenance. Therefore, the marginal cost of production of information goods distributed over the Internet is almost zero.

The Marginal Cost of the Production of Information Goods Distributed