Which of the Following Is True of Netflix

question 30

Multiple Choice

Which of the following is true of Netflix?

• A) It started as two separate services but is now viewed as a single subscription.
• B) It began as a DVD subscription model and then simultaneously introduced a video streaming subscription while maintaining the legacy business.
• C) It isn't a substitute good for conventional use-based media rental.
• D) It got its start offering a DVD-by-mail service for an annual, per-disc rate subscription fee.
• E) It started out as an IPO.

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Definitions:

Consumer Surplus

The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Monopolistically Competitive Price

Refers to the price level set by firms in a monopolistically competitive market, where many firms sell products that are differentiated from one another and not perfect substitutes.

Price Increases

A rise in the cost of goods or services, often measured by the rate of inflation.

Quantity Demanded

The total amount of a good that consumers are willing to purchase at a given price over a specified period.