Question: Take the consumer challenge. You currently subscribe to Netflix, which allows you to rent 3 movies per week by mail; you can keep out 1
Take the consumer challenge. You currently subscribe to Netflix, which allows you to rent 3 movies per week by mail; you can keep out 1 movie at a time, and the monthly charge is $16.99. Blockbuster now makes you the following offer: You can rent 3 movies per week by mail, plus you can take out 5 movies per month from any Blockbuster store; you can keep out 1 movie at a time, and the monthly charge is $19.99. Assuming that you can afford either plan, which is the better plan from a strictly financial point of view? Which is the better plan for you? (Hint: You’ll have to do some math, but that’s often the case for cost conscious consumers.)
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