It Cost FedEx $100 Million to Set Up a Website

question 37

Short Answer

It cost FedEx $100 million to set up a website to provide customers with package tracking information and 20 cents to enter the data for each package.What would be the AVC and ATC of tracking (a)1 million packages? (b)100 million packages?

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Definitions:

Ownership Rights

Legal rights that confer the possession, use, and transferability of a property or asset to its owner.

Market Participants

Entities or individuals that engage in the buying, selling, or exchange of goods and services in a particular market.

Maximize Utility

An economic principle that suggests individuals seek to obtain the highest level of satisfaction possible from their resources.

Maximize Benefits

Strategies or actions aimed at obtaining the greatest possible advantage or value from a situation, resource, or system.