The Cost Curves of Digital Products Differ from the Cost

question 69

Multiple Choice

The cost curves of digital products differ from the cost curves of physical products because in digitization:

• A)most costs are variable and fixed costs are low.
• B)most costs are fixed and variable costs are very low.
• C)most costs are fixed,but variable costs are high.
• D)all costs are variable.

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Definitions:

Rent Payment

Rent payment refers to the periodic monetary compensation that a tenant agrees to pay to a landlord in return for the use of rental property.

Joint Tenants

A form of ownership where two or more parties hold property together, with equal rights and obligations, and where upon the death of one, the surviving tenant(s) automatically inherits the deceased's share.

Parcel of Land

A specific piece of land, defined by boundaries, that is owned or meant to be owned as a unit.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed over a specific period of time.