Marginal Costs of a Producer May Be Very Small Due

question 6

Multiple Choice

Marginal costs of a producer may be very small due to its product's ability to satisfy a large number of consumers at the same time. This characteristic of a product is called

• A) economies of scale.
• B) rent-seeking.
• C) simultaneous consumption.
• D) consumer sovereignty.

---

Definitions:

Limited Liability

A legal structure where a company's owners are protected from personal liability for the company's debts or liabilities.

Limited Liability

Refers to a legal structure where a company's owners are not personally liable for the company's debts or liabilities.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Co-Operative

An organization owned and operated for the benefit of those using its services, with members sharing control according to democratic principles.