Netflix Offers Its Subscribers a Selection of Over One Hundred

question 2

Multiple Choice

Netflix offers its subscribers a selection of over one hundred thousand 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:

Keynesian Economics

An economic theory that advocates for active government intervention in the marketplace and monetary policy to stabilize economic fluctuations and boost demand.

Monetary Rule

A principle or guideline used by central banks to determine the amount of money supply growth necessary to influence interest rates and control inflation.

Price Stability

A situation in which prices in the economy do not change significantly in the short term and low inflation rates are maintained.

Real Growth

An increase in the economic output of a country, adjusted for inflation, that reflects a genuine expansion in the economy.