The Fixed Costs of WeBuy&Sell

question 21

Multiple Choice

The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the company. However, since its primary means of communication is web advertising, WeBuy&Sell.com has variable costs as low as 10 percent of its total costs. This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has _____.

• A) zero scalability
• B) low scalability
• C) infinite scalability
• D) high scalability

---

Definitions:

Physical Health

A state of well-being of the body, free from illness, injury, or pain, often maintained through regular physical activity, balanced nutrition, and adequate rest.

General Adaptation Syndrome

A model describing the body’s stress response in three stages: alarm, resistance, and exhaustion.

Resistance Stage

The second phase of the body's response to long-term stress, in which it adapts and attempts to cope with stressors.

Alarm Reaction

The first stage of the General Adaptation Syndrome, characterized by the immediate activation of the body's defense mechanisms in response to stress.