Set membership fee under investment constraints
Capital OneData Scientist · HR Screen
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This question evaluates quantitative skills in pricing optimization, constrained investment allocation, and interpretation of willingness-to-pay curves, testing competency in combining economic reasoning with statistical and mathematical modeling.
You receive $150M to produce content; each show costs $5M. Assume you price at the maximum WTP implied by the number of shows (per the WTP curve in the previous question) and that price cannot exceed the $20 cap. a) How many shows do you produce and what monthly membership fee do you set? b) If total investment increases to $250M (same per-show cost), recompute the number of shows and the price. State all assumptions and show calculations.
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