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The Fixed Costs of WeBuy&Sell

Question 21

Multiple Choice

The fixed costs of WeBuy&Sell.com,an e-commerce website,make up about 90 percent of the total costs incurred by the company.However,since its primary means of communication is web advertising,WeBuy&Sell.com has variable costs as low as 10 percent of its total costs.This allows WeBuy&Sell.com to earn high profits at a very low cost.According to the given scenario,WeBuy&Sell.com has _____ scalability.


A) zero
B) low
C) infinite
D) high

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