Which of the following statements is INCORRECT regarding the model for information products?
A) Average total costs slope downward, because average variable cost is constant, average fixed cost slopes downward.
B) The firm maximizes profit by setting the price of its product equal to marginal cost.
C) Marginal cost equals average variable cost.
D) In the long run, accounting profit is positive.
Correct Answer:
Verified
Q291: A distinguishing characteristic of producers of information
Q292: The first unit of an information product
Q293: Q294: The long-run equilibrium for a firm in Q295: Firms that produce an information product experience Q297: Which of the following statements is INCORRECT
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