One Possible Outcome of Internet Availability for Both Businesses and Consumers

question 31

True/False

One possible outcome of internet availability for both businesses and consumers is that it will be harder for businesses to differentiate themselves on any basis other than low price.

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Definitions:

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Market Price

The going rate at which a product or service is available for buying or selling in a particular market.

Pure Competition

A market structure characterized by an extremely high level of competition, where no single buyer or seller has the power to influence prices or market conditions.