The most popular movie streaming service is Netflix. Netflix members pay a monthly fee and are then

Question:

The most popular movie streaming service is Netflix. Netflix members pay a monthly fee and are then entitled to stream as many hours of programming as they wish. You’ve been hired by Netflix to determine the profit-maximizing monthly fee. You estimate that each customer’s inverse demand for streaming is given by P = 0.56 – 0.0112Q,  where Q is measured in hours of streaming time. What is the most you should charge for a monthly Netflix membership? (You may assume Netflix can provide an hour of streaming at essentially zero marginal cost.)

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

Step by Step Answer:

Related Book For  answer-question

Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

Question Posted: