Marginal Cost for an Information Product Would

question 75

Multiple Choice

Marginal cost for an information product would

• A) first decrease and then increase as quantity increases.
• B) increase constantly as quantity increases.
• C) decrease constantly as quantity increases.
• D) remain constant as quantity increases.

---

Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are deducted.

Price Lowered

A reduction in the cost of goods or services.

Total Revenue

The total amount of money a firm receives from sales of its products or services before any expenses are subtracted.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various price levels at a given time period.