Video marketers and publishers are more likely to profit from allowing rentals of their products, the higher the ratio of cost of production of originals to the transaction cost of rentals.

Question

Quizplus · Accepted Answer

This is because if the cost of production is high compared to the transaction cost of rentals, renting out the product can result in significant profits. However, if the production cost is low and the transaction cost is high, it may not be profitable to offer rentals.

Video Marketers and Publishers Are More Likely to Profit from Allowing