Which of the following statements about the wholesale and agency models for selling books is not true?
A) In the wholesale model, the retailer decides at what price to sell a book to the consumer.
B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost.
C) Amazon supports the agency model.
D) A result of the agency model was that Amazon's prices on e-books rose.

Question

Quizplus · Accepted Answer

Amazon has historically been more supportive of the wholesale model, which allows them to set the prices for e-books, often selling them at lower prices to attract more customers. The agency model, which publishers prefer, gives publishers the control over the retail price of e-books, limiting Amazon's ability to discount them.

Which of the Following Statements About the Wholesale and Agency