The Internet Has Reduced All of the Following Types of Costs

question 75

Multiple Choice

The Internet has reduced all of the following types of costs for consumers except for:

• A)information search costs
• B)transaction costs
• C)experience goods costs
• D)product information costs
• E)All of the above costs are reduced by the Internet.

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Definitions:

ATC

Average Total Cost; the total cost of production divided by the total output produced.

Economic Profits

The remaining amount after deducting total expenses from the total income, taking into account all direct and indirect costs.

Profit Maximizes

A strategy or objective of businesses to achieve the highest possible profit, where total revenue exceeds total costs by the largest margin.

MR

Short for Marginal Revenue, it represents the additional income earned from selling one more unit of a good or service.