gross margin

A common dismissal with a two-sided answer. The interviewer wants you to separate what is weak about thin wrappers from what makes many successful software businesses 'wrappers' too.

A pricing question about where the value of falling model costs should go. The answer depends on margin targets, competition and whether price or capability wins customers.

A packaging decision with adoption, revenue and margin pulling in different directions. The interviewer wants the trade-offs and a structure that captures value without stalling adoption.

Figma reported exactly this drop, driven by AI hosting costs, and moved to enforce credit limits. Find which features and customers cost the margin, meter heavy use, and keep margin only where AI does not buy retention.

Model prices do rise. Measure the margin hit, evaluate alternatives now, route only the tasks that need the expensive tier, and treat model price as a supplier term you negotiate and hedge.

A margin question with a constraint added halfway through. The average user is not the problem; the distribution is, and a flat price hides it until the model gets more expensive.