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

The agency model is where publishers set the prices and retailers like Amazon take a commission, which was initially opposed by Amazon as it preferred the wholesale model where it could set its own prices.

Which of the Following Statements About the Wholesale and Agency