Web sites like Ultramuzzic.com and Sonetz.com pursue a(n)________ approach for applying freeconomics when they offer free music downloads for users because reproduction and distribution of these products come at no cost.
A) gift economy
B) zero marginal cost
C) advertising
D) cross subsidies
E) freemium

Question

Quizplus · Accepted Answer

The zero marginal cost approach refers to the fact that the reproduction and distribution of digital goods, such as music downloads, have a negligible cost. This allows companies like Ultramuzzic.com and Sonetz.com to offer free music downloads without incurring significant expenses.

Web Sites Like Ultramuzzic