Average total cost for an information product would
A. increase constantly as quantity increases.
B. decrease constantly as quantity increases.
C. remain constant as quantity increases.
D. first decrease and then increase as quantity increases.
Answer: B
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Which of the following affects the magnitude of the multiplier?
i. marginal propensity to consume ii. marginal propensity to invest iii. marginal tax rate A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Everything else equal, the AC curve will shift when
A. the price of the product rises. B. technological change raises the MPP of one input. C. output rises. D. increasing returns to scale are present.
Productivity is defined as: a. the ratio of a specific measure of output to a specific measure of input
b. the production of worthwhile goods and services. c. the market value of goods, services, and resources produced per time period (e.g., per year). d. average input divided by average output. e. total input divided by average output.
Among the components of a 45-degree (or income) line are consumption and
a. investment b. inventories c. exports d. saving e. imports