Tele'Wire,a Mobile Manufacturer,offers Free Connections to Customers Who Buy Its

question 51

Multiple Choice

Tele'Wire,a mobile manufacturer,offers free connections to customers who buy its mobile phones.This cost of connection is actually included in the price of the mobile phone.Tele'Wire is pursuing a(n) ________ approach to applying freeconomics.

• A) cross subsidies
• B) gift economy
• C) zero marginal cost
• D) advertising
• E) freemium

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Definitions:

Logical Thinking

The process of using reasoning consistently to come to a conclusion, problem solving and decision making based on a set of given rules.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Ego

In psychoanalytic theory, the part of the psyche that mediates between the instinctual desires of the id, the moral and social demands of the superego, and reality.

Rule-Oriented

Pertains to systems, behaviors, or activities that are governed by a specific set of rules or protocols.