Multiple Choice
The online photo-sharing Web site Shutterfly offers unlimited free uploads. Which of the following best explains why they offer this service at no charge?
A) Shutterfly is trying to increase switching costs for their consumers.
B) Shutterfly is trying to decrease their average costs.
C) Shutterfly is trying to increase competition.
D) The marginal cost of uploading photos is near zero; setting price equal to marginal cost is simply an efficient pricing strategy.
Correct Answer:
Verified
Correct Answer:
Verified
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