When a firm produces an information product the initial or fixedcosts are

a. high
b. low
c. unpredictable
d. low or high

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Consequently the average fixed cost and average totalcost.........as the volume of output increases.

a. decrease
b. are constant
c. increase
d. change

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Since most of the costs are the initial fixed costs of?development, once the product is? developed, the

a. total
b. marginal
c. average

cost of producing more units of the product are typically lowand

a. constant
b. increasing
c. decreasing
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In this? case, then, the low and constant marginal costis....... the average cost.

a. above
b. equal to
c. below

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If the firm set the? price, or average? revenue, of the productequal to the marginal? cost, the firm would have.......

a. economic profits
b. normal profits
c. economic losses

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since the marginal cost is.........the average cost.

a. greater than
b. less than
c. equal to

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1 Information products require huge initial investment Therefore when a firm pro... View the full answer