For a Firm That Sells an Information Product, the Long-Run

question 266

Multiple Choice

For a firm that sells an information product, the long-run equilibrium exists at a point where

• A) price equals average total cost.
• B) price equals average variable cost.
• C) price equals average fixed cost.
• D) price equals marginal cost.

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Definitions:

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.

Tax Revenue

Income that the government receives from taxation of individuals and businesses.

Excise Tax

A tax levied on specific goods, services, or activities, such as tobacco, alcohol, and gasoline, usually to discourage use or generate revenue.

Consumers

Individuals or entities that purchase goods and services for personal use.