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(a) Cost allocation mechanisms are important when it comes to establishing other aspects of inter-firm compensations and how these are transferred to the users. There are two principles: receiving party pays (RPP) and calling party pays (CPP). Although from a theoretical point of view RPP seems to have better characteristics for ensuring allocative efficiency, CPP has been the overwhelming success in relaated to worldwide diffusion. Compare CPP with RPP.
(b) Long Run Incremental Cost (LRIC) is an economic cost concept designed to encourage:
List the strengths and weaknesses of the three approaches to LRIC modeling.
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Internet Protocol IP Gives computer-to-computer communication. Host and receiver addresses are computers. This is also known machine-to-machine communication.
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All references using actual quotes, paraphrase, or specific arguments, should employ page numbers. The essay is based on the unit content and should engage with the set readings, a
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