question archive Amigo, a matrimonial website, is essentially information intensive

Amigo, a matrimonial website, is essentially information intensive

Subject:ManagementPrice: Bought3

Amigo, a matrimonial website, is essentially information intensive. It allows people to create an account for free and post information about themselves on the site. Amigo does not incur much cost to extend its services to new customers. Given this information, Amigo is most likely to:
a. have fixed costs that constitute approximately 80 to 85 percent of total costs
b. earn very low revenue from additional customers.
c. have variable costs that comprise about 80 to 85 percent of total costs.
d. have extremely high incremental costs.

 

 

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