Information products typically have high fixed cost and low (sometimes nonexistent) variable costs.
The need to be informed is as indisputable as the ever-increasing importance of information in the economy and in society.
The production of information products is expensive, while their reproduction is very cheap. The fixed costs of the first copy are very high compared to the costs generated by each additional copy.
These reproduction costs and the distribution costs via the Internet are virtually zero. Accordingly, this rules out the lower limit for the price that normally corresponds to the marginal costs, resulting from one of the fundamental laws of economics, according to which in a competitive market the price equals marginal costs.
The marginal costs are the costs which arise from the production and sale of an additional unit of a product. In this case, it is simply the costs for copying and sending a piece of information over the internet.
Lear more by reading Kit.edu's Pricing Strategies Information Products.