Week 3 Econ 11

Week 3 Econ 11 - Week3Econ11 22:06 IndividualDemand: o...

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Week 3 Econ 11 22:06 Individual Demand: Marginal Utility Method Decide one unit at a time o Step 1: start at x = 0 Company Supply Cost vs. output o If you can sell jeans for $15 a pair, how many jeans should you make per  day? Total Revenue Method Marginal Revenue Method Market Supply Curve Table Method Demand and Supply Equilibrium Surplus drives price down Shortage Drives Price Up DRM Purpose Control access to digital works
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o Stored Music Itunes music used to power Apple FairPlay o Stored Video Itunes video uses Apply FairPlay o Streaming Video Netflix uses Microsoft PlayReady How to Limit Redistribution of digital file? o FairPlay Encrypt file Copying unrestricted Decryption of file required Broadcast Flag o FCC created regulations to limit redistribution of digital video Over-the-air broadcast But also can apply to cable or satellite Or streaming video o Called “broadcast flag” o Allows content provider (e.g. tv station) to set the “flag”  to tell devices to  limit redistribution o Devices include DVRs, computers
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How to limit redistribution of digital file Broadcast Flag Only broadcast-flag compliant devices can play video If flag set: Might not be allowed to record video Or might be allowed to record, but not to send to another device Or might be allowed to record and to send only to devices within  3 hops and max round-trip delay of 7ms Pro Argues Economic Technical Good for Society Con Argues This is the wrong answer
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Thursday 22:06 Market Failure Public goods Private good: o A good or service whose consumption by once person excludes  consumption by others Public good o A good or service whose consumption by one person does not exclude 
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Week 3 Econ 11 - Week3Econ11 22:06 IndividualDemand: o...

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