Network Goods Often Have High Variable Costs

question 191

True/False

Network goods often have high variable costs.

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Definitions:

Price Range

The spectrum or extent between the highest and lowest prices of a commodity over a given period.

Shut Down Point

The point at which a company's revenue is exactly equal to its variable costs and it ceases operations to minimize losses.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.

Price

The sum of money anticipated, needed, or provided as compensation for something.