The Software Business Is Extremely Profitable Compared to the Hardware

Multiple Choice

The software business is extremely profitable compared to the hardware business because:

A) the marginal cost to produce an additional copy of a software product is effectively zero.
B) of the lack of market price regulations and guidelines.
C) software producers serve niche businesses sectors with high profit margins.
D) software development is a one-time process with no upgrade costs.
E) software firms benefit from special tax exemptions that aid profitability.