Since Its Launch,Netflix Has Changed Its Business Model in Order

question 69

Multiple Choice

Since its launch,Netflix has changed its business model in order to

• A)compete with Blockbuster retail store expansion.
• B)respond to changing consumer needs and the evolution of new technologies.
• C)expand its focus from entertainment to movie collectibles and memorabilia.
• D)avoid head-to-head competition with satellite television providers,which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix.
• E)begin preparations to withdraw from its traditional method of mail delivery,which takes 2-3 business days and introduce next-day delivery through FedEx.

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Definitions:

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, often leading to an inefficient market outcome.

Factory Owner

An individual or entity that holds the ownership of a manufacturing unit where goods are produced.

Average Product

In economics, the output per unit of input, such as labor or capital, calculated by dividing total production by the total quantity of the input used in production.

Local Factory

A manufacturing facility situated within a specific locality or geographic area, contributing to the local economy.