Because the short-run average total cost curve slopes downward for an information product, the firm experiences

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In the context of information products, a downward sloping short-run average total cost curve indicates that as production increases, the average cost of producing each additional unit decreases. This phenomenon is known as economies of scale, specifically short-run economies of operation, where the firm becomes more efficient and cost-effective in its production process as it increases output.

Because the Short-Run Average Total Cost Curve Slopes Downward for an Information