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Homework answers / question archive / Microsoft's marginal cost of the 100th copy of Microsoft Windows 8 is _____

Microsoft's marginal cost of the 100th copy of Microsoft Windows 8 is _____

Economics

Microsoft's marginal cost of the 100th copy of Microsoft Windows 8 is _____.

a. the opportunity cost of producing the 100th copy of Windows 8

b. the maximum amount that Microsoft is willing to pay to produce the 100th copy of Windows 8

c. the minimum amount that someone is willing to pay for 100 copies of Windows 8

d. equal to the marginal benefit of the 100th copy of Windows 8

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The correct answer to the given question is option b. the maximum amount that Microsoft is willing to pay to produce the 100th copy of Windows 8.

The marginal cost for a product is defined as the incremental cost incurred by a firm for producing one additional unit of a product. Thus, in the given scenario, the marginal cost of the 100th copy of Microsoft Windows 8 is the maximum amount that Microsoft is willing to pay to produce the 100th copy of Windows.