Problem
Netflix sells a subscription service to 2 types of customers: hardcore movie- watchers who usually watch 10 movies a month and value the service at $50 a month [or $5 per movie], and casual movie-watchers who usually watch 5 movies a month and value the service at $30 a month [or $6 per movie]. There are an equal number of customers of each type. Netflix wants to set a subscription fee PS and a per-movie charge of PM. What choices of P5 and PM would maximize their revenue if they have an equal number of hardcore and casual movie-watchers?