The online photo-sharing Web site Shutterfly offers unlimitedfree uploads. Which of the following best explains why theyoffer this service at no charge?
A) Shutterfly is trying to increase switching costs for their consumers.
B) Shutterfly is trying to decrease their average costs.
C) Shutterfly is trying to increase competition.
D) The marginal cost of uploading photos is near zero; setting price equal to marginal cost is simply an efficient pricing
Strategy.
Correct Answer:
Verified
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