Question

a. If music lovers obtain music and video content via free music streaming services instead of buying it directly or paying for premium access, what would the record companies’ producer surplus be from music sales?

Answer 1

Answer: If music lovers obtain music and video content via free music streaming services instead of buying it directly or paying for premium access,clearly the record companies' producer surplus from music sales would be 0 (zero) since if consumers had the possibility to access free music and video services, there would be no necessary incentives to buy products from a record company and therefore these companies not having enough demand they would not have incentives to produce.