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Variety of prices for virtually the same service

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Please Answer the Following Question:

Netflix has three different subscription plans for streaming video: watch one screen at a time in Standard Definition for $7.99 per month; watch two screens at a time in High Definition for $10.99 per month; or watch four screens at a time in High and Ultra-High Definition for $13.99 per month. The ongoing difference in cost to Netflix between providing the one-screen plan vs. the four-screen plan is essentially zero. How do you explain the wide variety of prices for virtually the same service, given that the cost to Netflix of providing each plan is basically the same?

Reference no: EM131756518

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