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Comparative advantage is defined as a situation in which a region, company, individual or country can deliver a service or produce a good using an opportunity cost which is lower than that of his competitor. In this case, Chris and Andrew are delivering the service of editing…
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Download file to see previous pages At the same time, in terms of the clients getting updated information, Andrew still bring in comparative advantage over Chris.
2. (a) The lower-tie data packages increased by $5 per month. At the same time, the higher-tier data packages increased by $ 5. However, the percentage increase was not the same for the two groups. In this case, the increase for the lower-tie was 33% while for the higher-tier plan was 30%.
b. For the AT&T tablets, the low-tier plan will be in such a way that for every extra 300 MB, the overage fee that will be charged will be $ 20. The clients will also, through the lower-tier plan be able to get an extra one hour for streaming video or extra 300 posts social media. This is due to the extra megabytes.
c. The AT&T is executing this move in order to offset the coming plans of Apple for launching the iPad 3, which according to the analysts could lure many customers and dominate the market. Therefore, the action is meant to expand its market base before Apple comes in to take over.
d. The reason behind the increase is demand. This is because, we can see that the company is trying to make sure that the customers get more time for video streaming and accessing social sites. The factor responsible for the increase in demand is the increase in the product’s ...Download file to see next pagesRead More
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