The Average-Cost Curves (AVC)of Physical Products and Digital Products

question 30

Multiple Choice

The average-cost curves (AVC) of physical products and digital products

• A) are different because the AVC of digital products declines as quantity increases forming an L-shape, while the AVC of physical products is U-shaped.
• B) are both U-shaped.
• C) are both L-shaped.
• D) are different because the AVC of physical products declines as quantity increases forming an L-shape, while the AVC of digital products is U-shaped.