A friend of yours is considering two movie-streaming services. Provider A charges $120 per year regardless of
Question:
A friend of yours is considering two movie-streaming services. Provider A charges $120 per year regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $1 per movie. Your friend’s annual demand for movies is given by the equation QD = 150 - 50P, where P is the price per movie.
a. With each provider, what is the cost to your friend of an extra movie?
b. In light of your answer to (a), how many movies with each provider would your friend watch?
c. How much would she end up paying each provider every year?
d. How much consumer surplus would she obtain with each provider?
e. Which provider would you recommend that your friend choose? Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a With Provider A the cost of an extra movie is 0 With Provider ...View the full answer
Answered By
Rajesh Bajoria
I have been teaching Physics and Math since 2010 and have taught more than 500 online students worldwide and taken more than 12000 individual classes so far. I have worked with people of all ages, from children learning about basic science concepts, to high school students taking both regular and advanced/AP classes, to college grade students taking lower and upper division physics classes.
I have a vast experience of one-to-one teaching to foreign students of all nationalities. Furthermore, I have gained many years of teaching experience and techniques for US Canada Australian and UK students.
After teaching in so many countries, I found teaching online is the best way. I give Practical example to solve a question in Physics.
I teach my students according to their level, needs and interest in the virtual classroom, I show my students some pictures to describe, these pictures are based on our surround in society. I ask questions to know weather student are understanding or not. I keep on picking mistakes, correct and explain it.
I am a very patient teacher, as well as a creative one. Rather than repeating the same thing over and over, I will find a way to explain things that makes sense to students. I explain that Physics is not about strange formulas to memorize, but rather about understanding the underlying facts that create those formulas.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
