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A friend of yours is considering two movie streaming services. Provider A charges $100 per year for the service regardless of the number of movies

A friend of yours is considering two movie streaming services. Provider A charges $100 per year for the service 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=12030P , where P is the price per movie. With Provider A, the cost of an extra movie is $0 . With Provider B, the cost of an extra movie is $1 . Given your friend's demand for movies and the cost of an extra movie with each provider, if your friend used Provider A, he would watch 120 movies, and if he used Provider B, he would watch 90 movies. This means your friend would pay $100 for service with Provider A and $90 for service with Provider B. Your friend would obtain $ in consumer surplus with Provider A and $ in consumer surplus with Provider B. Given this information, which provider would you recommend that your friend choose? Provider A Provider B

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