Digital Subscription Models in Which People Pay to Access News

question 10

Multiple Choice

Digital subscription models in which people pay to access news content have proven to be a

• A)profitable approach for many smaller or midsized local newspapers but not for elite, national newspapers.
• B)profitable approach for many elite, national newspapers but not for smaller or midsized local newspapers.
• C)profitable approach for all newspapers, regardless of their size and focus.
• D)failure for all newspapers, regardless of their size and focus.

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Definitions:

Domestic Firms

Companies that operate primarily within the country of their incorporation, focusing on serving the local market.

Inefficient

Lacking in effectiveness or productivity, resulting in wasted resources or effort without achieving the desired output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases, leading to a lower cost per unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.