If an 8-bit digital to analog converter (DAC) produces an analog output voltage with a range of 10 volts (0-9 volts), what is the smallest incremental step in voltage that can be generated at the output?

Correct Answer: Option B — 0.04 volts

An 8-bit digital-to-analog converter utilizes $2^8 = 256$ discrete quantization steps. Dividing the 10-volt output span by 255 intervals yields approximately 0.0392 volts per step, which rounds to 0.04 volts for the smallest incremental analog voltage change generated.