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Explain the challenges in measuring consumer surplus of a free product like major online applications, such as Facebook and Google Search.

Read the articles:

 

1)     Measuring consumer surplus online. If this link does not work, your instructor can provide a pdf. file with this article.

 

http://www.economist.com/blogs/freeexchange/2013/03/technology-2

 

 

 

2)     Net benefits.  If this link does not work, your instructor can provide a pdf. file with this article.

 

http://www.economist.com/news/finance-and-economics/21573091-how-quantify-gains-internet-has-brought-consumers-net-benefits

 

 

 

You are expected to make your own contribution in a main topic as well as respond with value-added comments to at least two of your classmates. You are encouraged to respond to other students as well as to your instructor.

 

 

 

Choose one question to answer:

 

1)      Explain the challenges in measuring consumer surplus of a free product like major online applications, such as Facebook and Google Search.

 

2)      Explain how to quantify the gains that the internet has brought to consumers.

 

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