« previous next »

Author Question: Deflation refers to A) a falling price level. B) a decrease in the rate of inflation. C) Both A ... (Read 138 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Maximal Heart Rate Over Time Maximal Heart Rate Over Time
Shy children often have a high arousal level in novel social situations. Over time, parents can help ... Shy children often have a high arousal level in novel social situations. Over time, parents can help ...
Stand in a doorway and hook your fingertips on both sides about chest level or lower. Stand in a doorway and hook your fingertips on both sides about chest level or lower.
The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles. The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles.
Control of blood glucose level. Control of blood glucose level.
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Structures that affect circulation - arterioles and vasomotor responses and venous return

For a complete list of videos, visit our video library