In the context of the digital economy, 'Zero Marginal Cost' of information goods implies that:
A. Marginal cost is always high
B. Only physical goods have zero marginal cost
C. All goods have zero marginal cost
D. Once produced, an additional digital copy can be distributed at near-zero cost
Answer: Option D
Solution (By JKSSB Mock Tests)
Information goods and digital products typically have high fixed costs of production but near-zero marginal costs of reproduction and distribution, creating distinctive pricing and competition issues.
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