Information goods such as a music video have an L-shaped average cost curve.

Name: Information goods such as a music video have an L-shaped average cost curve.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The production cost for creating an information good like a music video is generally high due to the initial investment in equipment and expertise. However, once the information good is created, the cost of reproducing and disseminating it is relatively low, resulting in an L-shaped average cost curve.

Information Goods Such as a Music Video Have an L-Shaped