In the context of the digital economy, 'Zero Marginal Cost' of information goods implies that:
A. Marginal cost is always high
B. Once produced, an additional digital copy can be distributed at near-zero cost
C. Only physical goods have zero marginal cost
D. All goods have zero marginal cost
Answer: Option B
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.
No comments yet. Be the first to start the discussion!