An Online Movie Streaming Service Charges $14

question 115

Multiple Choice

An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to

• A) decrease revenue but increase profit.
• B) increase profit by increasing revenue.
• C) maintain market share.
• D) decrease market share.
• E) increase efficiency.

---

Definitions:

Collective Agreements

Contracts between employers and trade unions outlining terms of employment, working conditions, and employee rights.

Working Conditions

Facts about the situation in which the worker acts; includes physical environment, hours, hazards, travel requirements, and so on, associated with a job.

Comprehensive Benefit Packages

An extensive range of employee benefits, including health insurance, retirement plans, and other perks, provided by an employer.

Unionized Employees

Workers who are members of a union, which is an organization that represents their interests in negotiations with employers.