Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month he spread this fixed cost over a larger number of songs, and therefore his cost per song decreases the more songs he listens to. One if his friends says to Nicolas: “The more music you listen to, the less you pay per song so you should spend all your time listening to music.” Please explain what is wrong with the friend’s stat
Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month he spread this fixed cost over a larger number of songs, and therefore his cost per song decreases the more songs he listens to. One if his friends says to Nicolas: “The more music you listen to, the less you pay per song so you should spend all your time listening to music.” Please explain what is wrong with the friend’s stat
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month he spread this fixed cost over a larger number of songs, and therefore his cost per song decreases the more songs he listens to. One if his friends says to Nicolas: “The more music you listen to, the less you pay per song so you should spend all your time listening to music.” Please explain what is wrong with the friend’s statement.
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