Retepson, Inc. has been in business for over 50 years. Retepson is best known for its "Guide to Colleges" line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether new developments in information technology will make its current business model obsolete. Which of the following questions is most relevant to Retepson's decisions with respect to the viability of its business model?
A) Does Retepson currently have high market share or low market share in the industries in which it competes?
B) Has Retepson been profitable throughout its history?
C) Would the profit margins of any new businesses be higher or lower than current profit margins?
D) To what extent will college students be likely to choose books to get information about colleges?
E) Are people who bought Retepson books in the past likely to buy new editions of those books after they leave college?
Correct Answer:
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