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The most popular movie streaming service is Netflix. Netflix members pay a monthly fee and are then entitled to stream as many hours of programming

The most popular movie streaming service is Netflix. Netflix members pay a monthly
fee and are then entitled to stream as many hours of programming as they wish. Youve
been hired by Netflix to determine the profit-maximizing monthly fee. You estimate that
each customers inverse demand for streaming is given by
P Q =0.560.0112,
where
Q is measured in hours of streaming time. What is the most you should charge for a
monthly Netflix membership? (You may assume Netflix can provide an hour of
streaming at essentially zero marginal cost.)

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