Which of the following is generally not a main source of revenue for Internet firms such as Google? Multiple Choice In-app purchases Selling data Charging high prices for basic services Selling advertising
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Generally, these include selling advertising, in-app purchases, and selling data. Show more…
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After you have studied Economics in the Neus on PP. $278-279$, answer the following questions. a. What products do Facebook and Google sell? b. In what types of markets do Facebook and Google compete? c. How do social nerworks and Internet search providers generate revenue? d. What is special about social networking sites that make them attractive to advertisers? c. What is special about Internet search providers that make them attractive to advertisers? f. What technological changes might increase the profitability of social networks compared to Internet search providers?
[Extra Credit] Under Scenario II, assume that segment 2 is predominantly comprised of small businesses with less than 10 employees and therefore can be priced differently using 'size of business' as justification for discounts. What is true concerning price discrimination at the segment level? (Please assume that Segment 1 and Segment 3 are both comprised of medium to large businesses and are indistinguishable for pricing purposes) Scenario II: Brand X retains its free service and introduces two additional subscription-based services: one providing up to 300 automated calculations and the other providing an ad-free environment for manual calculations targeted at ad-sensitive customers. Group of answer choices: A. Under optimal prices, segment-level price discrimination allows total revenue for Brand X to exceed $1.3 million. B. Optimal prices are possibly infeasible owing to consumer fairness concerns as the price for manual ad-free calculators vastly exceeds the price for calculators with up to 300 calculations. C. There is no pricing design with pure segment-level discrimination that can beat the expected revenue from a design that sets a fixed price for different versions. D. None of the above.
Akash M.
Facebook Advertising Revenue. Figure 1.11 provides a bar chart showing the annual advertising revenue for Facebook from 2010 to 2017 (Facebook Annual Reports). a. What is the variable of interest? b. Are the data categorical or quantitative? c. Are the data time series or cross-sectional? d. Comment on the trend in Facebook's annual advertising revenue over time.
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