The First Unit of an Information Product Is Produced at a High

question 42

Multiple Choice

The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively low

• A) total costs.
• B) marginal and average variable cost.
• C) external cost.
• D) social cost.

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Definitions:

Business Diversify

The strategy of increasing the variety of products or markets a company is involved in to reduce risk and increase growth potential.

Lower Risk

A situation or decision that involves reduced exposure to potential loss, damage, or negative outcomes.

Value Proposition

A declaration that encapsulates the reasons a consumer would purchase a product or utilize a service, emphasizing its distinctive benefits compared to rival offerings.

Customer Needs

The desires, requirements, or necessities that consumers express, which drive their purchasing decisions.