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(Solved): Amazon Prime subscribers pay a monthly membership fee and then have the opportunity to buy products ...



Amazon Prime subscribers pay a monthly membership fee and then have the opportunity to buy products at “low prices” with free shipping. Suppose the "low price" charged for a product equals Amazon's marginal cost (including the shipping cost). Could Amazon earn profits using this pricing strategy? Group of answer choices Yes, customers buy products at marginal cost but the membership fee contributes to the firm’s profits. Yes, the price that customers pay for products contributes to the firm’s profits. No, the firm isn’t using price discrimination. No, a firm can’t earn profits selling products at cost.



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