Blockbuster Video was founded in 1982 (back in the days before the internet) as a place where consumers could rent videos. It wasn’t long before Blockbuster became the largest video chain in the U.S. and was earning above-normal profits. Yet in January of 2015, Blockbuster went out of business. Why couldn’t Blockbuster maintain its above-normal profits? This is not a research question – a full credit answer will discuss the general concept involved here. It is not necessary to give specific details about Blockbuster’s business.
Blockbuster Video was founded in 1982 (back in the days before the internet) as a place where consumers could rent videos. It wasn’t long before Blockbuster became the largest video chain in the U.S. and was earning above-normal profits. Yet in January of 2015, Blockbuster went out of business. Why couldn’t Blockbuster maintain its above-normal profits? This is not a research question – a full credit answer will discuss the general concept involved here. It is not necessary to give specific details about Blockbuster’s business.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Blockbuster Video was founded in 1982 (back in the days before the internet) as a place where consumers could rent videos. It wasn’t long before Blockbuster became the largest video chain in the U.S. and was earning above-normal profits. Yet in January of 2015, Blockbuster went out of business. Why couldn’t Blockbuster maintain its above-normal profits? This is not a research question – a full credit answer will discuss the general concept involved here. It is not necessary to give specific details about Blockbuster’s business.
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