Time remaining: 00:09:29 Economics At the time of writing, Amazon.com offered Prime, a bundle that includes free shipping on consumer purchases, discounts on groceries, as well as video, music, games, and books, at a price of US$119 per year. The price of the Harry Potter paperback box set was US$50.33 with free shipping. 1. From the viewpoint of an AmazonPrime subscriber, compare the marginal cost of buying the Harry Potter box set from Amazon vis--vis a competing retailer that charges for shipping. 2. Suppose that AmazonPrime subscribers are subject to the sunk-cost fallacy. How would that affect their demand to buy products from Amazon vis--vis competing retailers? 3. By default, Amazon has set membership of Prime to automatically renew. This auto renewal takes advantage of a behavioral bias. 4. Explain which one. Considering your answers to (a)-(c) above, explain how the Prime service gives Amazon an advantage over competitors