Because the short-run average total cost curve slopes downward for an information product, the firm experiences
A) a downward sloping marginal cost curve.
B) a downward sloping average variable cost curve.
C) short-run economies of operation.
D) long-run diseconomies of scale.
Answer: C
Economics
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Given the characteristics: (1) many buyers and sellers, (2) free entry and exit, (3) perfect information, and (4) heterogeneity of products, monopolistic competition and perfect competition share
a. (1) and (4). b. (1), (2), and (3). c. (2) and (4). d. (2), (3), and (4).
Economics
If the annual interest rate remains unchanged over the next two years, and the present value of $120 to be received one year from now is $100, what will $100 be worth two years from now?
A) $120 B) $140 C) $144 D) Uncertain. We need to know the interest rate.
Economics