Netflix used to charge $14.99 per month for its movie rental service.However,when Blockbuster introduced the same service at $13.99,Netflix then dropped its price to $13.99.Netflix most likely made this price reduction in an attempt to
A)decrease revenue but increase profit.
B)increase profit by decreasing revenue.
C)maintain market share.
D)decrease market share.
E)increase efficiency.

Question

Quizplus · Accepted Answer

Netflix most likely reduced its price to maintain its market share and remain competitive with Blockbuster's similar service. This strategy is aimed at retaining existing customers and attracting new ones, rather than reducing revenue or increasing efficiency.

Netflix Used to Charge $14