Author Question: Deflation refers to A) a falling price level. B) a decrease in the rate of inflation. C) Both A ... (Read 53 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
Deflation refers to
 
  A) a falling price level. B) a decrease in the rate of inflation.
  C) Both A and B are correct. D) None of the above is correct.

Question 2

McDonalds and many supermarkets offer vending machines in their stores that rent new movie releases for as low as 1.00 per day provided that they are returned in 24 hours before incurring a late fee.
 
  How can Netflix and Blockbuster compete against this type of service? Or is their something else going on there that doesn't first meet the eye?



kaillie

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

A

Answer to Question 2

Patrons who may take advantage of the 1.00 movie rentals were already buying a burger or doing their groceries. The opportunity cost to them is quite low to simply swipe their credit card and take their movie on the run. Netflix and Blockbuster may not necessarily be competing for the precisely the same customers. Netflix customers are willing to wait for their movies to arrive in the mail and Blockbuster customers apparently don't mind making the special drive over to the store to pick up their favorite movie. In either case the Netflix and Blockbuster customer did not choose to make a movie rental on a whim as the McDonalds and supermarket customer most likely did. In addition, the rental agreements are very different. Blockbuster and Netflix customers might also enjoy the convenience of being able to view the movie at their convenience. The supermarket video vending machines offer a lower price but tighter terms of service since the movies need to be returned in 24 hours.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

For a complete list of videos, visit our video library