In Recent Years, Online Bookseller Amazon

question 250

Multiple Choice

In recent years, online bookseller Amazon.com has lowered its profits by offering some of its customers free shipping and building more warehouses to hold its inventories.Which of the following explains Amazon.com's actions?

• A)Amazon.com feared government regulation if its profits were too high.
• B)Amazon.com took these actions to deter entry into its market by new online booksellers.
• C)Amazon.com took these actions to compete more effectively with existing online booksellers.
• D)Amazon.com was forced to take these actions because of the bargaining power of its suppliers.

Understand the concept of net present value (NPV) in relation to financial break-even.

Assess how changes in production processes impact break-even points.

Interpret the relationship between production volume and fixed costs.

Comprehend the role of variable costs in project evaluation.

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