The cost curves of digital products differ from the cost curves of physical products because in digitization:
A)most costs are variable and fixed costs are low.
B)most costs are fixed and variable costs are very low.
C)most costs are fixed,but variable costs are high.
D)all costs are variable.

Question

Quizplus · Accepted Answer

The cost curves of digital products are mainly composed of fixed costs such as research and development, software development, and infrastructure investment, while the variable costs such as duplication and distribution are relatively low. Therefore, most costs are fixed, and variable costs are very low in digitization.

The Cost Curves of Digital Products Differ from the Cost