Information Products (E.g., Software)

question 160

Multiple Choice

Information products (e.g., software)

• A) have relatively high fixed costs but low marginal and average variable costs.
• B) have relatively low fixed costs but high marginal and average variable costs.
• C) have relatively high fixed costs and relatively high marginal and average variable costs.
• D) have relatively low fixed costs and relatively low marginal and average variable costs.

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Definitions:

Price

The monetary value anticipated, needed, or dispensed for acquiring something.

Utility Increases

A situation where the satisfaction or benefit derived from consuming goods or services rises.

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit decreases.

Sodas

Carbonated beverages, often sweetened and flavored, forming part of the non-alcoholic drinks market.