412 W3 Final draft - Writing Assignment 3: A Re-examination...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Writing Assignment 3: A Re-examination of the Netflix Problem For Writing Assignment 2 we examined the results of Netflix undergoing a split of their two primary products and its effect of their total profit. This examination was based of several assumptions that we will now alter to make the scenario more realistic. I selected the following: Netflix is now in an oligopoly with one other competing firm. Both firms begin with the same demand function. The oligopoly is continued post-split. Fixed Cost is now 1. The product market is homogeneous. Pre-split Netflix
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Netflix pre-split has a new Total Profit of 7. The basic result of increased competition from an oligopoly has been a significantly steeper demand curve and a reduction in total profits from the previous monopolistic example. Netflix Post-split Streaming Video Market
Background image of page 2
Disc Services
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 3:
Background image of page 4
Total Profits before the split: 7 Total Profits after the split: 5.312 Netflix profits decreased as a result of the split from 7 to 5.312.
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/29/2012 for the course ECONOMICS 300 taught by Professor Instructor during the Fall '11 term at Boise State.

Page1 / 5

412 W3 Final draft - Writing Assignment 3: A Re-examination...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online