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E-Books With the Explosive Growth of Electronic Book, or E-Book, Readers

question 45

Multiple Choice

E-Books
With the explosive growth of electronic book, or e-book, readers like Amazon's Kindle and Barnes & Noble's Nook and even smart phones like the iPhone and BlackBerry devices, book pricing is becoming a significant concern for book publishers. Digital book sales have grown exponentially from almost non-existent in 2002 to more than $120 million in 2009. While these sales are still small compared to industry sales, they are expected to grow even more in the coming years due to the plethora of e-book readers coming on the market. This creates a dilemma for publishers, though, because the average price of a hardcover book, which is the bread-and-butter of publishers' profits, is $27.00, whereas the price of an e-book is $9.99. To protect profits, some publishers, like Simon & Schuster, are delaying the electronic editions by four months. Other publishers are following suit, claiming consumers will not buy the hardcover at $27.00 if they can purchase it at a much lower price electronically.
-Refer to E-Books.Consumers purchasing Barnes & Noble's Nook for $299 receive ten e-books for $19.99. Barnes & Noble is using which pricing tactic?

Definitions:

Unionized Business

A business where its workers are members of a union, which represents their interests in negotiations with management over wages, benefits, and working conditions.

NLRB

The National Labor Relations Board, a US federal agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Religious Schools

Educational institutions that are based on the teachings of a specific religion and often offer a curriculum that incorporates religious studies.

Unfair Labor Practice Charges

Allegations made by employees or labor unions against employers, accusing them of violating labor laws and workers' rights.