Problem
The New York Times and The Guardian are media outlets that have different business modalities. The New York Times gives free access to 10 articles per month and then charges for a $15 per month subscription. The Guardian asks for a contribution of one dollar per article read, but does not restrict such access if one has not contributed. Go to the home page of the portals of the two newspapers to find out.
A. Although the circulation of The New York Times and The Guardian is millionaire around the planet, one of the two has invested more in globalization than the other. Explain your selection by referring to a piece of evidence on the front page of one of the two newspapers that points to a fixed cost increase that will mean MUCH more readers abroad.
B. The reporting is much deeper than what newspapers used to do before globalization. Explain in terms of average fixed costs how globalization has made it possible to deepen reporting.
C. Although the number of readers, that is, the circulations, are very different between the newspapers, the marginal cost of The New York Times and The Guardian is almost the same. explain.
D. The business model of each one is different. Regarding The New York Times Why does it make economic sense to open access the first 3 articles per month?
E. Given that The Guardian takes a pro-active role in civil society, why ask for a contribution of one dollar per article?