Microeconomics Internet Service Providers in the Country Term Paper

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Microeconomics

Internet service providers in the country are faced with some serious challenges when it comes to microeconomic distribution of resources. They have to consistently provide value-added services in order to be able to gain more customers and retain the existing ones. There are some trade-offs involved when it comes to how big an area the service should cover, who the service should be given to and how to expand or produce their service. "Microeconomics emphasizes the trade-offs inherent in solving allocation problems. The act of allocating resources of necessity involves all people who act as producers or as consumers, who benefit by trading with other people, and whose actions affect, for good or for ill, the quality of life." [1] In our areas, it is Cox Communication that is very popular with residents for Internet service.

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Along with Internet, they also provide television cable and telephone services. Most people purchase the whole package with all these services and Cox Communications understand that they will not be able to compete with rivals if they did not offer this package. The package is also made affordable so competition can be effectively challenged. In this industry, every firm has to fight hard for survival because communication is an ever-growing industry of unimaginable potential. To tap into its potential,….....

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