Penquin Ltd.agrees with Apple Corporation to use the "agency" model of setting prices and paying commissions on the sales of e-books for iPads.Under this model, publishers
A)agree to sell e-books exclusively through certain "agents."
B)match Amazon.com's e-book prices.
C)price e-books below cost to sell more e-book readers.
D)set their own prices.

Question

Quizplus · Accepted Answer

Under the agency model, publishers are able to set their own prices for e-books. Apple Corporation serves as the "agent" and takes a commission on each sale. This is different from the wholesale model, where the retailer sets the price and purchases the e-book from the publisher at a discount.