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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: