Explain why the delay associated with surfing the Web are greater because users

Question

Explain why the delay associated with surfing the Web are greater because users are charged a flat monthly fee to access the Web instead of per-unit use charges. Suppose that the per-unit use charge was set at a level such that the average internet user ends up paying the same total amount if her consumption remains unchanged subsequent to the per-unit charge system being implemented. What will be the effect on total units of Internet usage if the per-unit charge system is adopted? Will the average user be better off? Explain.

Explanation / Answer

the total unit of internet usage will decrease since the users who used to surf the net beyond excessively will limit their web usage since they will be charged on per unit usage basis. While the users who use the web less or are an avg user will keep their usage on the same limit. the average user(average user is the user whose payment stays the same after the implementation of the above mentioned policy) will neither be at a loss nor will be better off, since the average user will be paying the same amount for the same amount of usage.....so the UTILITY FUNCTION OF THE USER DOES NOT CHANGE, since price paid by the consumer remains the same and so does his income(there con be no effect on his income due to the new policy).......moreover it can also be said that the implementation of the new policy pushes the consumer to the better off side since in case he for some month his consumption does not reach the normal limit he can use his leftover fund with for some othe goods to increase his utility for that month.....

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