There are two types of Netflix users: intensive users and casual users. Intensive users compose 20% of all viewers and have inverse demand:

Pi=0.60.01Qi

where Q is measured in hours of streaming time. Casual users compose 80% of all viewers and have inverse demand:

Pc=0.40.02Qc

You are tasked with choosing the optimal monthly membership fee. Netflix remains committed to allowing unlimited streaming, once this fee has been paid. (You may assume Netflix can provide an hour of streaming at essentially zero marginal cost.)

a.How many hours will intensive users stream after they pay their membership fee, and how much consumer surplus will they receive?

Qi=

CSi= $

b.How many hours will casual users stream once they pay their membership fee, and how much consumer surplus will they receive?

Qc=

CSc= $

c.What fee will you charge?

P= $