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Netflix, the One-Time "Dot-Com" Upstart Managed to Achieve Scale Economies

question 73

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Netflix, the one-time "dot-com" upstart managed to achieve scale economies despite the fact that it faced two massive rivals: Blockbuster, a name synonymous with home video rental, and Walmart, not just a large firm, Fortune One, the largest firm in the US ranked by revenues. In what ways did Netflix offer size advantages over these rivals?


Definitions:

Player Draft

A process in sports leagues where teams select eligible players to join their roster from a pool of candidates.

Player Productivity

Typically refers to the effectiveness and efficiency of a player, often in the context of sports, in contributing towards the team's objectives.

Market Wage Rate

The prevailing rate of pay for a specific job in the labor market, influenced by supply and demand for labor in that field.

Units of Labor

The quantity of labor input, measured in hours or number of workers, used in the production of goods and services.

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