medical advice to customers. Consumers might pay such a company directly, or perhaps hospitals or

healthcare practices might subscribe on behalf of their patients. Setting up the website, collecting the

information, writing the content, and buying or leasing the computer space to handle the web traffic are all

fixed costs that the company must undertake before the site can work. However, when the website is up and

running, it can provide a high quantity of service with relatively low variable costs, like the cost of monitoring

the system and updating the information. In this case, the total cost curve might start at a high level, because of

the high fixed costs, but then might appear close to flat, up to a large quantity of output, reflecting the low

variable costs of operation. If the website is popular, however, a large rise in the number of visitors will

overwhelm the website, and increasing output further could require a purchase of additional computer space.
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