Welcome to English Corner
This is part of the English-language corner of the website - a space with different formats of English-language economics content: terms and articles, vocabulary trainers, tests, and materials for the international ("межнар") track. Below is one example of such a task, in the "качественная задача" (case/open-question) format used in international olympiads.
About this business task
This task is adapted from the International Economics Olympiad (IEO) 2026, Economics and Finance Open Questions section. The IEO is the world's largest annual economics and finance competition for high school students, held in a different host country each year, and one of the recognized international ("межнар") tracks that students who succeed at the All-Russian Olympiad in Economics can go on to compete in.
This particular question tests whether you can apply core location-theory and externality concepts to an unusual, real-world-flavored scenario - deciding whether to build an AI computing facility on Earth or in orbit. It combines conceptual reasoning (parts a, c, d) with straightforward quantitative comparison (part b), which is typical of the IEO's Open Question format: you're expected to explain your economic logic, not just produce a number.
Work through each part in order. Try to write a full argument before checking the solution - many points in the real marking scheme are awarded for reasoning, not just the final answer.
Open Question 4. Songs Make Money
The company Songify offers users a subscription for $1 per month, providing unlimited access to a music catalog of 50 million tracks, with the average track duration being 3 minutes. The average number of paying subscribers is 5 million people, and each user listens to about 300 tracks per month (not necessarily unique tracks). Songify keeps 20% of the subscription revenue for itself and distributes the remaining 80% among musicians, in proportion to the number of times their tracks are played.
Mark noticed that beginner musicians often complain about low income from the platform, while popular artists receive substantial sums. Mark launched a project called TrackFactory:
"TrackFactory is a unique music label that helps lesser-known performers increase their income on the Songify platform. We handle all aspects of music promotion, guaranteeing artists stable and high payouts even with a small number of listeners."
The first clients of TrackFactory noticed that, indeed, even though their recognition did not grow, their monthly income on the platform increased significantly. However, Songify's security service soon noticed strange activity of some TrackFactory artists, and their accounts were blocked for "dishonest use of the platform."