Marginal costs of a producer may be very small due to its product's ability to satisfy a large number of consumers at the same time. This characteristic of a product is called
A) economies of scale.
B) rent-seeking.
C) simultaneous consumption.
D) consumer sovereignty.

Question

Quizplus · Accepted Answer

Simultaneous consumption refers to the ability of a product to satisfy a large number of consumers at the same time. This characteristic may result in very small marginal costs for the producer as the cost per unit decreases with each additional consumer who benefits from the product. Options A, B, and D are not applicable in this context.

Marginal Costs of a Producer May Be Very Small Due