Question

Microsoft likely has to spend billions of dollars building and developing an operating system, but once it is produced, the cost to get the software to each customer is almost zero. when microsoft sells more units, their average total costs decrease. this means microsoft is said to have

Answer 1

When Microsoft sells more units, their average total costs decrease. this means Microsoft is said to have economies of scale. This means that they experience continued decreasing costs as output of the product increases.