How Do Comparison Shopping Sites Generate Revenue

question 92

Multiple Choice

How do comparison shopping sites generate revenue?

• A) by charging a commission on transactions
• B) by selling their products in physical stores as well
• C) by charging a virtual shelf space fee to manufacturers
• D) by increasing the click count on their sites
• E) by charging distribution fees to consumers

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Definitions:

Competitive Increasing-cost Industry

An industry where supply costs increase as output expands, often because resources become scarcer or harder to obtain as production grows.

Long-run Equilibrium

A state in which all firms in a perfectly competitive market earn zero economic profits, with no incentives for new firms to enter or existing firms to exit.

Decrease in Demand

A situation where consumers' willingness and ability to purchase a product at all price levels declines, represented by a leftward shift of the demand curve.

Constant-cost Industry

An industry in which the input prices and production costs remain stable even as the industry output changes.