Answer both of the following questions (including all parts of 1 and 2).

1. Identify the pricing strategy used by video game consoles where they price their consoles barely above cost. (1 pt.) Why do would the video game console manufacturers ? (1 pt.)These companies make more than just bare minimum profits. How do these companies do to make higher levels of profits in this industry? How does their pricing strategy of video game consoleshelp them? (1 pt.)
2. Identify and explain a major reason whysupply chains moving to shorter channels with fewer intermediaries. (3 pts.)