Characteristics of online movie production

Assignment Help Business Economics
Reference no: EM132559602

Netflix seems like a spectacular company with a spectacular CEO. It has successfully moved from mail-order CD's to become a programmer of online shows and movies. Its revenues are growing in excess of 25% per year, and it's earning are growing too. However, at its current stock price Netflix is selling for a price/earnings ratio of over 250. The only way that I can believe that a P/E ratio that high can be justified is if there are either natural monopoly or returns-to-scale advantages in the industry.

a. Can you identify any characteristics of online movie production/distribution that would allow you to characterize the industry as no size advantage, a returns-to-scale industry, or a natural monopoly industry? Please explain.

b. Given your analysis in a., can you identify any developments in the online movie/show distribution industry that support your conclusion from a.?

Reference no: EM132559602

Questions Cloud

Determining the demand for hamburgers : Explain why the following statement is false: "In the goods market, no seller would be willing to sell for less than the equilibrium price."
What should this consumer do to maximize utility : The MUy is 50 and the Py is $25. The MUz is 20 and the Pz is $5. What should this consumer do to maximize utility?
What is the spending multiplier for country : Suppose that the real GDP of a country is in equilibrium at $480 billion.
How is progress toward healthy people 2020 targets measured : What are the "interagency workgroups" to which the speaker refers, and what is their role? How is progress toward Healthy People 2020 targets measured?
Characteristics of online movie production : Can you identify any characteristics of online movie production/distribution that would allow you to characterize the industry
Wish to know the price elasticity of demand : Wish to know the price elasticity of demand? And why it does not change on the curve, instead, along the curve.
What is the rule of nines and how is it used : What is the Rule of Nines and how is it used? Describe the body area and percentage associated with each. (See text explanation and Figure 62-3, p 1848).
What distinguishes the short-run from the long-run : What distinguishes the short-run from the long-run?
Consider elasticity of demand : Consider Elasticity of Demand. Explain why you will prefer the demand for your skills to be either Elastic or Inelastic

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd