Of the World's Largest Publishers Was Totally Unprepared for Recent

question 71

Multiple Choice

of the world's largest publishers was totally unprepared for recent increases in the demand for digital books.During 2011,the sale of e-books exceeded the sales of traditional printed paperback books for the first time.If the publisher had __________,it would have been more prepared for this shift in demand.

• A) optimized its distribution by eliminating local and chain store bookstores (like Borders) that failed to meet their sales quotas
• B) noticed the change in the demographics of book readers in general
• C) noticed the behavioral changes in moviegoers, who now prefer to view 3D movies in IMAX theaters
• D) shifted funds from product development to advertising
• E) tracked, as part of its ongoing environmental scanning activities, the sales of e-books sold by other publishers as well as e-book readers sold by Amazon.com (Kindle) and Barnes and Noble (Nook)

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Definitions:

Market Equilibrium

A situation in which the supply of an item is exactly equal to its demand, leading to a stable price for the item in the marketplace.

Negative Externality

A cost suffered by a third party due to an economic transaction that they were not involved in, often without compensation.

Externalities

External impacts of an economic activity on unrelated third parties, which can be either positive or negative.

Market Price

The existing cost at which a service or asset can be acquired or disposed of in a given market.