Examlex

Solved

More and More Consumers Are Watching Their Favorite Network Television

question 179

Essay

More and more consumers are watching their favorite network television programs from their computers.Suppose that a network begins to charge a small fee to access and download an episode of a popular program.For a television network, the marginal cost of supplying the episode to one more customer is zero.a) What type of good is this Internet television episode download? Explain.b) Will the efficient quantity of television downloads be provided? Explain.


Definitions:

Division's

A specific segment or branch of a company or organization that operates semi-independently or focuses on a particular task, product line, or service.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as an expense of the period.

Retail Clothing Store

A business establishment that purchases clothing from manufacturers or wholesalers and sells these directly to consumers.

Product

Anything that can be offered to a market that might satisfy a want or need, including physical goods, services, and experiences.

Related Questions