Netflix Offered Its Subscribers a Selection of Over One Hundred

question 17

Multiple Choice

Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as much as three thousand. This presents a significant _____ for Netflix over its rivals.

• A) marginal cost
• B) price advantage
• C) variable cost
• D) studio preference
• E) scale advantage

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Definitions:

Ordinary Income

Income earned from standard operations, subject to standard tax rates, including wages, salaries, commissions, and interest.

Distributed

In finance, refers to the allocation of dividends or other payouts to shareholders from a corporation's earnings.

Recognized

Acknowledged or understood, often referring to income, gains, or losses for tax purposes.

Distribution

Withdrawals or payouts from investments, retirement accounts, or revenue from a business that may be taxable.