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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Definitions:

Community Resource

A service, facility, or information that is available to members of a community, often aimed at improving quality of life.

Social Network

A social network is a social structure made up of individuals or organizations that are connected by one or more types of interdependency, such as friendships, kinship, common interest, or economic exchange.

Compadres

A term of Spanish origin, meaning friends or companions; often used to denote a relationship of mutual support and respect.

Kinship Groups

Social units based on common ancestry, marriage, or adoption that form a fundamental component in organizing societies.