Firms That Produce an Information Product Experience Short-Run Economies of Operation

question 116

Multiple Choice

Firms that produce an information product experience short-run economies of operation because

• A) the firm will always produce in the decreasing portion of the marginal cost curve.
• B) of the U-shaped nature of the average total cost curve.
• C) of the U-shaped nature of the average variable cost curve.
• D) the average total cost of producing and selling the product declines as output increases.

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