Microeconomics Internet Service Providers in the Country

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. 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, it's important to allocate resources effectively. Internet service in our area is very popular and immensely in demand therefore the firms operating in the area have to be extremely careful and precise when targeting customers. In this affluent area, most people want services to be hassle-free and especially what Internet to come with no problems and no virus issues. Cox Communication is thus targeting people effectively by offering Suite that protects against viruses and provides 24-hour unlimited Internet service that is very fast and comes at a relatively low price. Cox communication, in the microeconomics sense, has to be very efficient when using resources. They target the audience first, have a certain area tp cover in mind, conduct research to find out how much people are willing to pay and then price and expand their services accordingly. Because resources are scarce [2], no firm can simply enter the market and start spending on marketing aimlessly. With just a certain amount of capital and labor to invest, firms need to be very efficient in their allocation of resources in order to minimize cost and maximize profits.