Question

Microsoft has a special version of its Windows operating system that it sells at a low price in countries where cheap pirated software is widespread. The cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product. Selling this "special edition" software at a low price in certain countries is very similar to what economists call:_______
a) welfare loss.
b) natural monopoly.
c) a price taker.
d) price discrimination.

Answer 1

Answer:

Price discrimination

Explanation:

This particular economist call is the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. In this scenario Microsoft made a special version so that it can prove the differences in charges and to stop people from pirating the windows operating system.