If the first copy cost of a music video is $223,000 and the marginal cost is $0, how much total cost would the firm incur if it produces 1 million copies?
A) zero
B) $223,000
C) $1 million
D) $1 million + $223,000

Question

Quizplus · Accepted Answer

The total cost includes the first copy cost of $223,000 plus the marginal cost of producing additional copies. Since the marginal cost is $0, producing 1 million copies incurs no additional cost beyond the first copy cost, totaling $223,000.

If the First Copy Cost of a Music Video Is