Question: Microsoft Corp. spent around $6 billion programming and debugging their Windows 7 operating system. This is the amount of fixed cost. The marginal cost of

Microsoft Corp. spent around $6 billion programming and debugging their Windows 7 operating system. This is the amount of fixed cost. The marginal cost of producing one more copy of Windows 7 is very low, about equal to the cost of the disk.

Question:Do you think the computer software industry (or other similar industries in gaming, cell phones, etc.) is likely to have a large number of firms or only a few firms? Explain your answer and provide an example of a software (or similar) firm and the product(s) it produces.

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