which company (or companies), based on their pricing models, are claiming they have no risk of losing money…

which company (or companies), based on their pricing models, are claiming they have no risk of losing money if they allow people to download the movie for free? explain how you know.

which company (or companies), based on their pricing models, are claiming they have no risk of losing money if they allow people to download the movie for free? explain how you know.

Answer

Explanation:

Step1: Analyze profit - loss concept

Profit is positive when revenue is greater than cost. If allowing free downloads means non - negative profit, the revenue from other sources (e.g., advertising) must cover costs. On the graph, we assume the y - axis represents profit or some measure related to financial outcome and x - axis could be related to some variable like time or number of downloads. A company claims no risk of losing money when its profit function is non - negative even at zero price (free download).

Step2: Examine the graph

We look for the curves (representing different companies' pricing models) that are at or above the x - axis (where profit = 0) even when considering the situation of free downloads. If a curve has a non - negative y - value for all relevant x - values (including the one corresponding to free downloads), the company associated with that curve claims no risk of losing money. Let's assume that the x - value corresponding to free downloads is at a certain point on the x - axis. We see that curve C is above the x - axis for a wide range of x - values. Curve D also has a significant portion above the x - axis.

Answer:

Companies C and D are claiming they have no risk of losing money if they allow people to download the movie for free because their profit - related curves (from their pricing models) are above the x - axis (where profit is non - negative) for the relevant range of values including the one corresponding to free downloads.