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

Explain the negative effects of import-substitution policies, Outline the p...

Outline the possible negative effects of import-substitution policies. Define and outline import-substitution; focus on reducing domestic reliance on imports by implementing hi

Economics question im stuck with, The prevention of major swings in economi...

The prevention of major swings in economic activity can be handled most easily by the: A. Household sector B. business sector C. financial sector D. government sector why?

Demand pull inflation, Demand Pull Inflation: It describes a sustaine...

Demand Pull Inflation: It describes a sustained increase in the general price level that is caused by a permanent increase in nominal aggregate demand. Simply, is can be view

Demands for the two market are P1=15-, demand for two market are P1=15-Q1&P...

demand for two market are P1=15-Q1&P2=25-Q2.the monopoly TC is C=5+3(Q1+Q2).What are ,output,profit&MR if the monopolist can price disc? riminate

Tropospheric pollution or Air pollution, Air is one of the important consti...

Air is one of the important constituent in the environment that is prone to pollution. Pollution of air refers to that part of atmosphere which is very nearest to the earth’s surf

Explain about gross domestic product, Q. Explain about Gross Domestic Produ...

Q. Explain about Gross Domestic Product? Gross Domestic Product:Value of all the services and goods produced for money in an economy, evaluated at their market prices. Excludes

National income, National income: The national income or product ...

National income: The national income or product or expenditure provides a measure of total value at factor cost of final goods and services, which are available either fo

Economics, what is micro economics

what is micro economics

Dependence on agricultural production, Dependence on agricultural productio...

Dependence on agricultural production: Dependence on agricultural production and primary product for exports. The external sector comprises Imports and Exports, Ghana shows de

Capital gain, Capital Gain: A capital gain is a form of profit which is ear...

Capital Gain: A capital gain is a form of profit which is earned on an investment by re-selling an asset for more than it cost to buy. Assets that can be purchased for this purpose

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