Many Pundits Assumed Amazon Would Fail. Why

question 39

Multiple Choice

Many pundits assumed Amazon would fail. Why?

• A) the firm was losing money and competing against established, well known, offline brands who were going online.
• B) Amazon was too short-term focused.
• C) the firm was based in Seattle, rather than Silicon Valley.
• D) Amazon sales were not increasing.
• E) all of the above.

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Definitions:

Price-Setting Methods

Various strategies and techniques businesses use to determine the selling price of their goods or services.

Variable Cost Method

An accounting method where product costs include variable expenses, changing with the level of output, but exclude fixed costs.

Markup Per Unit

The sum added onto the purchase price of products to account for overhead costs and generate profit.

Unit Selling Price

The amount of money charged to the customer for a single unit of product or service.