Problem: Many digitized companies, whether streaming music services or web conferencing hosts, use the freemium pricing model whereby they offer a base-level product for free but customers who wish to use the product's full features, such as no-ad listening or unlimited conferencing, pay a subscription. What is the cost basis for offering these limited services for free? Question options: Freemium pricing involves only capacity costs, not operating costs Research indicates that freemium prices engender high fixed costs The variable costs for producing another unit of the product are close to zero Costs of media advertising increase when freemium versions are offered There is no financial incentive as there are marginal-fixed costs associated with providing these services