Polygon Sells Its E-Book Readers at the Cost Price of $15

question 71

Multiple Choice

Polygon sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is Polygon implementing?

• A) subscription-based
• B) razor-razor-blade
• C) pay-as-you-go
• D) direct sales

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Definitions:

Fixed Amount

A specific sum of money that does not change over time or with use, often referring to payments or charges.

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Clarity

The quality of being easily understood or free from ambiguity.

Order Instrument

A negotiable instrument that is payable “to the order of an identified person” or “to an identified person or order.”