As an online video commentator, you are committed to offering your videos without ads. Until now, youve
Question:
As an online video commentator, you are committed to offering your videos without ads. Until now, you’ve experimented with different per-video prices for your content and collected user-level data on the number of videos viewed in a week at different prices in the file.
a. Using these data, estimate a linear inverse demand curve for your average user.
b. You are interested in charging a fixed subscription fee for your services, where users would pay a fee up front and then have unlimited access to your videos at zero cost per video. Assuming the demand curve you estimated in a can be reasonably applied to your entire customer base, what is the highest subscription fee you could charge?
Step by Step Answer:
Managerial Economics And Business Strategy
ISBN: 9781260940541
10th Edition
Authors: Michael Baye, Jeff Prince