Amazon Prime Incurs a Huge Fixed Cost to Obtain Streaming

question 31

Multiple Choice

Amazon Prime incurs a huge fixed cost to obtain streaming rights to movies and television programs. However, it is able to spread this cost over a large number of subscribers that results in a cost-savings phenomenon referred to as

• A) volume synergies.
• B) economies of scale.
• C) captured savings.
• D) size effects.
• E) location economies.

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Definitions:

Deficit Syndrome

A subtype of schizophrenia characterized by the presence of persistent and primary negative symptoms such as emotional blunting, alogia, or avolition.

Antipsychotic Medicine

A class of medication primarily used to manage psychosis, including delusions, hallucinations, or disorders like schizophrenia.

Negative Symptoms

Symptoms of schizophrenia and other mental health disorders characterized by deficits or loss of normal functions, such as blunted affect or social withdrawal.

Disorganized Speech

A speech pattern where ideas are fragmented and fail to follow logical sequences, often seen in schizophrenia and other psychotic disorders.