Netflix is a service that allows subscribers to rent up to a certain number of DVDs at a time for a fixed monthly rate. One subscription rate is $18.00 per month for 3 DVDs by mail and unlimited instant viewing. As soon as a customer returns a DVD, Netflix sends another. Customers can keep each DVD for as long as they want.

REQUIRED

A. How many DVDs and movies do you need to view per month to be indifferent between the cost of renting movies from a video store at $3.95 each and subscribing to Netflix?

B. What factors other than cost would influence your decision?