The providers of information products typically

Question

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Providers of information products, such as software or e-books, typically have high fixed costs, such as research and development, programming, and content creation. Once these fixed costs are incurred, the marginal cost of producing an additional unit of the product is usually very low or even zero. For example, the cost of producing one more copy of an e-book is negligible once the content has been created and the digital file exists.

The Providers of Information Products Typically