Which of the following statements is true about marginal costs in high-technology industries?
A) They are invariably higher than fixed costs.
B) They are the costs that customers need to bear to adopt a new technology.
C) They include the costs of packaging and product distribution.
D) They are extremely high in software-making companies.
E) They do not exist if the product is sold by a sales force directly to end-users.

Question

Quizplus · Accepted Answer

Marginal costs in high-technology industries often include variable costs such as packaging and product distribution. These costs are associated with producing one additional unit of a product or service and can vary depending on the scale of production and the nature of the product.

Which of the Following Statements Is True About Marginal Costs