The Online Photo-Sharing Web Site Shutterfly Offers Unlimitedfree Uploads

question 30

Multiple Choice

The online photo-sharing Web site Shutterfly offers unlimitedfree uploads. Which of the following best explains why theyoffer 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.

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Definitions:

Chunked

The process of organizing or breaking down information into smaller, manageable units or chunks to improve recall and understanding.

Massed

Massed practice refers to the learning approach where information or skills are studied intensively over short periods of time, without breaks.

Recognition

The identification of previously encountered or learned information when presented again.

Relearning

The process of regaining knowledge or skills that were previously learned but forgotten, which often occurs faster than the initial learning.