Which of the Following Statements Is INCORRECT Regarding the Model

question 162

Multiple Choice

Which of the following statements is INCORRECT regarding the model for information products?

• A) Average total costs slope downward, because average variable cost is constant, average fixed cost slopes downward.
• B) The firm maximizes profit by setting the price of its product equal to marginal cost.
• C) Marginal cost equals average variable cost.
• D) In the long run, accounting profit is positive.

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Definitions:

Vision

The ability to see, interpreted by the brain's processing of signals sent from the eyes.

Mydriatic

Relating to the dilation of the pupil, often due to medication or specific health conditions.

Mydriat

Often refers to mydriasis, the dilation of the pupil of the eye caused by disease, trauma, or the use of certain drugs.

Dilation

The action of expanding or being expanded in diameter or volume; in medical contexts, it often refers to the expansion of a passage or cavity.