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Please teach me how to answer the following 2 questions. Please look at the attached files. 1. What is Netflix's business model? 2. If firms

Please teach me how to answer the following 2 questions.

Please look at the attached files.

1. What is Netflix's business model?

2. If firms maximize profits where P=Cmg, what happens then when marginal cost is zero?

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image text in transcribed

What is Netflix's business model? (Hint: what is Netflix's marginal cost?) Firm's maximization solution* Marginal revenue = Marginal Cost * Always * It is also where social benefits are maximizedIf firms maximize profits where P= Cmg What happens then when marginal cost is zero? Netflix business case Netflix charges 10 USD per month. The marginal cost of adding one more subscriber into their platform is zero. Max Profits P=Marginal cost 10 # 0 But we know Netflix maximizes profits

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