Question: 1) (10 points) Suppose you are choosing between two pricing options for your new movie streaming service. Option 1 customers pay a monthly fee of

1) (10 points) Suppose you are choosing between two pricing options for your new movie streaming service. Option 1 customers pay a monthly fee of $20 dollars per month to watch unlimited movies. Option 2 customers pay $2 dollars each time they watch one of your movies. Assume that customers have the following prospect theory preferences: V(x)=x(0.5)ifx0V(x)=2(x)(0.5)ifx

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