-Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average total cost?

Question

Quizplus · Accepted Answer

Curve 1 represents the average total cost (ATC) because it shows the cost per unit decreasing as the quantity of output increases, which is typical for information products due to their low marginal cost after the initial product is developed.

-Refer to the Above Figure