(a)[2]
Identify two reasons given for why people purchase virtual goods.
(b)[4]
- Which indicators can be used to decide whether a firm is large or small? [4]
(b(ii))[4]
Is the evidence provided sufficient for you to decide whether the firms that sell virtual goods are large or small?
(c)[4]
The article says that customer numbers are rising rapidly. What is likely to happen to the virtual goods company’s total fixed costs and total variable costs as this happens?
(d)[6]
Using the evidence given, discuss whether it is wise for a firm to spend money advertising products that do not exist on the internet through sites such as Facebook.