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LRIC
LRIC or LRAIC (the distinction between the two is presented below) is an abbreviation for "long-run average incremental cost". A LRIC model is often used in telecommunications regulation to determine the price paid by competitors for services provided by an operator with significant market power, usually the incumbent (former monopoly). Components Each of LRIC's components is analysed below. Long run Long run implies that all inputs are considered variable. In other words, even capital equipment can vary in response to a change in demand. Average LRAIC can be defined as including all the costs of services provided within an increment. In the context of telecommunications, LRAIC has often been used to set interconnection charges with the increments usually defined as the whole group of services using the core network. These services (PSTN The public switched telephone network (PSTN) is the aggregate of the world's telephone networks that are operated by national, regional, or lo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Telecommunications
Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of transmission may be divided into communication channels for multiplexing, allowing for a single medium to transmit several concurrent Session (computer science), communication sessions. Long-distance technologies invented during the 20th and 21st centuries generally use electric power, and include the electrical telegraph, telegraph, telephone, television, and radio. Early telecommunication networks used metal wires as the medium for transmitting signals. These networks were used for telegraphy and telephony for many decades. In the first decade of the 20th century, a revolution in wireless communication began with breakthroughs including those made in radio communications by Guglielmo Marconi, who won the 1909 Nobel Prize in Physics. Othe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Market Power
In economics, market power refers to the ability of a theory of the firm, firm to influence the price at which it sells a product or service by manipulating either the supply or demand of the product or service to increase economic profit. In other words, market power occurs if a firm does not face a perfectly elastic demand curve and can set its price (P) above marginal cost (MC) without losing revenue. This indicates that the magnitude of market power is associated with the gap between P and MC at a firm's profit maximising level of output. The size of the gap, which encapsulates the firm's level of market dominance, is determined by the residual demand curve's form. A steeper reverse demand indicates higher earnings and more dominance in the market. Such propensities contradict Perfect competition, perfectly competitive markets, where market participants have no market power, P = MC and firms earn zero economic profit. Market participants in perfectly competitive markets are cons ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Incumbent
The incumbent is the current holder of an office or position. In an election, the incumbent is the person holding or acting in the position that is up for election, regardless of whether they are seeking re-election. There may or may not be an incumbent on the ballot: the previous holder may have died, retired, resigned; they may not seek re-election, be barred from re-election due to term limits, or a new electoral division or position may have been created, at which point the office or position is regarded as vacant or open. In the United States, an election without an incumbent on the ballot is an open seat or open contest. Etymology The word "incumbent" is derived from the Latin verb ''incumbere'', literally meaning "to lean or lay upon" with the present participle stem ''incumbent-'', "leaning a variant of ''encumber,''''OED'' (1989), p. 834 while encumber is derived from the root ''cumber'', most appropriately defined: "To occupy obstructively or inconveniently; to b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Monopoly
A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce a particular thing, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge Monopoly price, overly high prices, which is associated with unfair price raises. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly may als ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Long Run
In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints and markets are not fully in equilibrium. More specifically, in microeconomics there are no fixed factors of production in the long-run, and there is enough time for adjustment so that there are no constraints preventing changing the output level by changing the capital stock or by entering or leaving an industry. This contrasts with the short-run, where some factors are variable (dependent on the quantity produced) and others are fixed (paid once), constraining entry or exit from an industry. In macroeconomics, the long-run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short-run when these variables may not fully adjust. History The d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
PSTN
The public switched telephone network (PSTN) is the aggregate of the world's telephone networks that are operated by national, regional, or local telephony operators. It provides infrastructure and services for public telephony. The PSTN consists of telephone lines, fiber-optic cables, microwave transmission links, cellular networks, communications satellites, and undersea telephone cables interconnected by switching centers, such as central offices, network tandems, and international gateways, which allow telephone users to communicate with each other. Originally a network of fixed-line analog telephone systems, the PSTN is now predominantly digital in its core network and includes terrestrial cellular, satellite, and landline systems. These interconnected networks enable global communication, allowing calls to be made to and from nearly any telephone worldwide. Many of these networks are progressively transitioning to Internet Protocol to carry their telephony tra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
