The high fixed cost and low marginal cost technology in this industries often lead to significant market power with the normal inefficiencies. In particular, prices often exceed marginal cost meaning that price benefits to price discrimination will be significant to the participants.
IT enables keen observation and analysis of consumer behaviour and hence certain market strategies that could not have been carried out before can be implemented
Faimus answered the question on February 3, 2018 at 13:43
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Using information technology to engage in international development is difficult in a region of the world where the internet has not reached every sector of...
(Solved)
Using information technology to engage in international development is difficult in a region of the world where the internet has not reached every sector of the population. However, Kenya is leading the way in transforming information technology usage in Africa. Explain some general trends that suggest that Information communication and technology will continue to be a driver of growth.
Date posted:
February 3, 2018
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Answers (1)
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The more firms invest in IT, the higher their productivity. Discuss this statement by explaining the three reasons why IT boosts productivity.
(Solved)
The more firms invest in IT, the higher their productivity. Discuss this statement by explaining the three reasons why IT boosts productivity.
Date posted:
February 3, 2018
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Answers (1)
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Microsoft packages are sold together for a single price. This is attractive for information goods since the marginal cost of adding an additional good to...
(Solved)
Microsoft packages are sold together for a single price. This is attractive for information goods since the marginal cost of adding an additional good to a bundle is negligible. Explain the economic effects of such behaviour.
Date posted:
February 3, 2018
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Answers (1)
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Assume you have a company that recently extended it's operations into your country. Create the company and advise them how to develop a system to...
(Solved)
Assume you have a company that recently extended it's operations into your country. Create the company and advise them how to develop a system to run its operations effectively.
Date posted:
February 3, 2018
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Answers (1)
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The average cost of a product is:AC=500+2000/X. Find the marginal cost for the 10th unit
(Solved)
The average cost of a product is:AC=500+2000/X. Find the marginal cost for the 10th unit.
Date posted:
January 28, 2018
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Answers (1)
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(Solved)
What are the types of government intervention in healthcare?
Date posted:
January 23, 2018
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Answers (1)
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Explain the source of financing healthcare in Kenya
(Solved)
Explain the source of financing healthcare in Kenya
Date posted:
January 23, 2018
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Answers (1)
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what are the advantages and disadvantages of economic growth
(Solved)
what are the advantages and disadvantages of economic growth
Date posted:
January 23, 2018
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Answers (1)
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Explain the following terms: opportunity cost, scarcity, production possibility frontier
(Solved)
Explain the following terms:
opportunity cost
scarcity
production possibility frontier
Date posted:
January 23, 2018
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Answers (1)
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What happens when there is decrease in money supply?
(Solved)
What happens when there is decrease in money supply?
Date posted:
January 23, 2018
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Answers (1)
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State some of the limitation posed by monetary policies employed by the central banks in developing countries
(Solved)
State some of the limitation posed by monetary policies employed by the central banks in developing countries.
Date posted:
January 23, 2018
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Answers (1)
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How does liquidity trap occur?
(Solved)
How does liquidity trap occur?
Date posted:
January 23, 2018
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Answers (1)
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Explain the phenomenon of liquidity trap
(Solved)
Explain the phenomenon of liquidity trap.
Date posted:
January 23, 2018
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Answers (1)
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(Solved)
Recognize the impact of monetary policy on aggregate demand
Date posted:
January 23, 2018
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Answers (1)
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Justify expansionary and contractionary monetary policy.
(Solved)
Justify expansionary and contractionary monetary policy.
Date posted:
January 23, 2018
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Answers (1)
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Explain factors that prevent the money multiplier from working empirically as it does theoretically
(Solved)
Explain factors that prevent the money multiplier from working empirically as it does theoretically
Date posted:
January 23, 2018
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Answers (1)
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Explain how the money multiplier works in theory
(Solved)
Explain how the money multiplier works in theory
Date posted:
January 23, 2018
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Answers (1)
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Use the concept of market equilibrium to explain changes in the interest rate and money supply
(Solved)
Use the concept of market equilibrium to explain changes in the interest rate and money supply
Date posted:
January 23, 2018
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Answers (1)
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Explain factors that cause shifts in the money demand curve
(Solved)
Explain factors that cause shifts in the money demand curve
Date posted:
January 23, 2018
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Answers (1)
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What are the factors that affects the demand of a product?
(Solved)
What are the factors that affects the demand of a product?
Date posted:
January 23, 2018
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Answers (1)