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How Is NetFlix Different from Hastings' First Start-Up, Pure Software

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How is NetFlix different from Hastings' first start-up, Pure Software?


Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Maintenance

The process of preserving or keeping equipment, machinery, buildings, etc., in working order by conducting regular check-ups and repairs.

Income Effect

How an alteration in income for either a person or an economic system influences the demand levels for a certain good or service.

Price Ceiling

A legally imposed maximum price on goods or services, beyond which they cannot be sold.

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