Because of their cost curve,digital products profits will:
A)remain constant regardless of volume,once the variable costs are paid.
B)decrease as volume increases,once labor costs are paid.
C)increase very rapidly as volume increases,once the fixed costs are paid.
D)increase rapidly as volume increases,once the fixed costs are paid.

Question

Quizplus · Accepted Answer

Digital products typically have high fixed costs and low variable costs. Once the fixed costs are covered, additional sales contribute significantly to profits, leading to rapid profit increases with higher volume.

Because of Their Cost Curve,digital Products Profits Will