Could Amazon earn profits using this pricing strategy? Yes, the price that customers pay for products contributes to the firm's profits.
a) Yes, customers buy products at marginal cost but the membership fee contributes to the firm's profits.
b) No, a firm can't earn profits selling products at cost.
c) Yes, the price that customers pay for products contributes to the firm's profits.
d) No, the firm isn't using price discrimination.