Explain the long run incremental cost, Microeconomics

Assignment Help:

Question:

(a) Long Run Incremental Cost (LRIC) is considered as the "gold standard" for setting interconnection charges. Discuss the strengths and weaknesses of the three approaches to LRIC modeling.

(b) Within the context of telecommunications networks, two parts of the service can be distinguished: originating the call and forwarding it to the point of interconnection and the termination service, which involves picking-up of the call from the interconnection point and transferring it to the final destination. With telecommunications, the entire call is in most instances paid for by the originating party of the call (CPP principle). There are also cases where the receiving party pays for the termination services (RPP principle). Many practical arguments militate in favor of CPP. Discuss the advantages and disadvantages of RPP and CPP.

(c) Efficient Component Pricing Rule (ECPR) has been subject of considerable discussion and critics. List the principles and the disadvantages of ECPR.


Related Discussions:- Explain the long run incremental cost

Impact of government legislations on business, Impact of government legisla...

Impact of government legislations on business in india Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and

Demand and supply, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Aggregate demand and aggregate supply, In a small rural town, 150 people wo...

In a small rural town, 150 people would like to be employed (this is the supply of labor). In order to make profits, capitalists hire some of these workers to produce grain. Those

Capital intensive operations, Where minimum efficient scale is very huge fo...

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of

Illustrate the term less developed and developed countries, How might one m...

How might one measure differences in living standards between less developed and developed countries?  This is a very wide question where any clear and relevant calculate shoul

Analysing the digital economy relative to e business, Problem: a) What ...

Problem: a) What factors would you consider when analysing the digital economy relative to e business? b) "The growing use of the internet by consumers and businesses has re

What is the nash equilibrium, i) Two firms, A and B, are operating in a U...

i) Two firms, A and B, are operating in a UK textile industry under duopolistic condition and choose to either produce at "High" price or a "Low" price. Suppose you are the man

Strategic planning for enhancing exports, Strategic Planning for Enhancing ...

Strategic Planning for Enhancing Exports: Strategic Planning for Enhancing Exports need to be undertaken at the national level. It is necessary  to undertake a separate and

Production possiblities curve, suppose either computers or televisions can ...

suppose either computers or televisions can be assembled with the following labor inputs: units produced: 1 2 3 4 5 6 7 8 9 10 total labor used: 3 7 12 18 25 33 42 54 70 90 Draw th

., wHEN WAGE IS $6.05, HOW MANY HOURS ARE WORKED A WEEK?

wHEN WAGE IS $6.05, HOW MANY HOURS ARE WORKED A WEEK?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd