Newspapers usually own their printing presses while magazines generally do not because:
A)they take advantage of economies of scale.
B)they are richer and can afford it.
C)they might experience hold- up problems.
D)there is more competition in their market.

Question

Quizplus · Accepted Answer

Magazines generally do not own their printing presses because they might experience hold-up problems. If a magazine owns its printing press, it is dependent on the press for its printing needs. If the press raises its prices, the magazine has no choice but to pay the higher prices or find another press. This can give the press a lot of power over the magazine, and it can lead to hold-up problems.

Newspapers Usually Own Their Printing Presses While Magazines Generally Do