When Netflix Instituted Price Increases and Tried to Pitch Them

question 24

Multiple Choice

When Netflix instituted price increases and tried to pitch them as a benefit,consumers saw through the line and the press provided the company with plenty of _____,though most of it was around the unplanned message that Netflix was trying to dupe customers as it raised prices.

• A) public announcements
• B) proactive news management
• C) reactive news management
• D) publicity
• E) communications distribution

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Definitions:

Efficient Price

A price level where the quantity supplied equals the quantity demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of goods where one person's consumption does not reduce the availability of the good for consumption by others.

Nonexcludable

A characteristic of a good or service where it is impossible to prevent individuals from enjoying its benefits once it is provided.

Marginal Social Cost

The additional cost to society as a whole from producing one extra unit of a good or service, including both private costs and externalities.