Question

You love 90’s house music. You find a vintage CD of all of the hits on ebay. There a ton of these CDs on ebay, so it is not rare. You really want to listen to this album, which includes hits from Crystal Waters, Amber, and Stardust. You also see this album is available for download on iTunes. If the cost of buying a CD and ripping the tracks to your iPhone (including your time) is $26, what is the most Apple could charge on iTunes for a 15-track album?

A. More than $26, because Apple has more costs and needs to make a profit.

B. $26, the same as the cost of buying the CD and ripping the tracks to your iPod.

C. Less than $26, because Apple is more efficient.

D. There is not enough information given to answer this question.

I think the answer is B, but I just want to make sure. Thanks in advance.

Answer 1

Option b is correct $26 because it includes time and cost of buying and ripping and Apple should charge the same.

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