An Information Product Typically Has

question 23

Multiple Choice

An information product typically has

• A) high total fixed costs and high marginal costs.
• B) low total fixed costs and low marginal costs.
• C) low total fixed costs and high marginal costs.
• D) high total fixed costs and low marginal costs.

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Definitions:

Present Value

The today's worth of future money or cash flow sequences, when a certain rate of return is applied.

Discount Rate

In finance, the discount rate is the interest rate used to determine the present value of future cash flows.

Present Value

A future sum of money or cash flows' value at present, applying a specific rate of return.

Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, where interest in the next period is then earned on the principal sum plus previously accumulated interest.