Sunday, 22 September 2013

Economics of Information Systems

Consider an information systems decision related to learning a foreign language with the aid of using technology (or its organization) or a Service provided by the organization. Conduct a study to itemize and analyze all the economic COSTS involved. Write a report indicating the relevant costs. Make explicit any assumptions you use. Consider all relevant stakeholders and potential opportunity costs.

Concepts that you MUST Consider and Document in writing this paper
• What decision constitutes the context of this assignment?
• Units of output
• Fixed costs -- not proportional to units of output
• Variable costs - proportional to units of output
• Sunk costs are irrelevant
• Real vs nominal costs
• Marginal costs
• Opportunity costs 


Note: You need to say in the paper that you are going to measure, for example, the average page for this department… try to use small numbers like $30, etc. and not big numbers. Consider how many hours to complete the work. 


Use 10 references including the following books to use for citation. The following books MUST be used in the paper

The Economics of Information Technology: An Introduction by Hal R. Varian, Joseph Farrell and Carl Shapiro

The Economics of Information: A Guide to Economic and Cost-Benefit Analysis for Information Professionals by Bruce R. Kingma (2010)

How to Measure Anything: Finding the Value of Intangibles in Business by Douglas W. Hubbard (Apr 19, 2010)


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