With Nonrivalrous Consumption, Such as in the Case of Online

Multiple Choice

With nonrivalrous consumption, such as in the case of online music and movies, as more consumers buy the product,

A) the average cost of the output declines because the marginal cost is very small.
B) marginal cost is low, but the average cost of the output will be rising.
C) the average cost of the output will be rising because marginal cost is quite high.
D) marginal cost is quite high, but the average cost of the output will be declining.