Explain how the Internet has affected the average fixed cost of a daily print newspaper
Please provide the best answer for the statement.
The production of the daily newspaper is an example of economies of scale because as output increases, the average total cost falls. There are high fixed costs to producing a newspaper (writing it, including photos and ads, checking copy, and laying out articles). But once the newspaper is written and ready to be printed, these high fixed costs can be spread over a large number of units of output. The average total cost falls as print production increases. With the advent of the Internet, there are fewer subscribers for the print edition of the newspaper, so newspaper companies have found that they cannot spread their high fixed costs over a large number of units of output because the newspaper has fewer sales. As a consequence, they have to raise prices to cover the high fixed cost, but the higher prices reduce the number of subscribers. This situation is likely to shift more and more readers to the Internet and eliminate many print newspapers.
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Expansionary fiscal policy
A) can be effective in the short run. B) can be effective in the long run. C) causes complete crowding out in the short run. D) is never effective because of crowding out.
If the quality of a good improves while its price remains the same, then the value of a dollar
a. rises and the cost of living increases. b. rises and the cost of living decreases. c. falls and the cost of living increases. d. falls and the cost of living decreases.
The theory of rational choice assumes that:
A. tastes do not matter. B. tastes are given. C. tastes do not affect the demand curve. D. tastes influence the supply curve.
Economists usually use the term "recession" to refer to:
A. any slowdown in the growth of real GDP. B. zero real GDP growth. C. two or more consecutive quarters of declining real GDP. D. a reduction in nominal GDP lasting more than six months.