A Defining Characteristic of the Subscription-Based Business Model Is That

question 74

Multiple Choice

A defining characteristic of the subscription-based business model is that the

• A) user pays for only the services he or she consumes.
• B) user pays for access to a product or service whether he or she uses it during the payment term or not.
• C) basic features of a product or service are provided free of charge, but the user must pay for premium services such as advanced features or add-ons.
• D) initial product is often sold at a loss or given away for free in order to drive demand for complementary goods.

---

Definitions:

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an international cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market.

Tax Burden

The overall economic weight of taxation on an individual, corporation, or other entity, often measured as a percentage of income or revenue.

Inelastic

A characteristic of demand whereby a change in price leads to a lesser change in the quantity demanded, indicating low sensitivity to price changes.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product, service, or commodity.