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First note that the average cost per unit of production decreases with the amount sold, since the marginal cost of producing one more digital copy is zero Also note that as more items are sold they are of greater value to the customers, and so they may be willing to pay a higher price For more details on the construction of such demand curves see Section 57 and Figure 58 544 Peak-load pricing The key result of Section 541 is that social surplus is maximized by marginal cost pricing A form of marginal cost pricing is also optimal in circumstances of so-called peak-load pricing Suppose that demand for a service is greater during peak hours, lesser during offpeak hours, and the cost depends on both the amounts consumed and the maximum amount consumed.

Decouple the connection and initialization of peer services in a networked application from the processing these peer services perform after they are connected and initialized. In detail: encapsulate application services within peer service handlers. Each service handler implements one half of an end-to-end service in a networked application. Connect and initialize peer service handlers using two factories: acceptor and connector. Both factories cooperate to create a full association [Ste93] between two peer service handlers and their two connected transport endpoints, each encapsulated by a transport handle. The acceptor factory establishes connections passively on behalf of an associated peer [12] service handler upon the arrival of connection request events issued by remote peer service handlers. Likewise, the connector factory establishes connections actively to designated remote peer service handlers on behalf of peer service handlers. After a connection is established, the acceptor and connector factories initialize their associated peer service handlers and pass them their respective transport handles. The peer service handlers then perform application-specific processing, using their transport handles to exchange data via their connected transport endpoints. In general, service handlers do not interact with the acceptor and connector factories after they are connected and initialized.

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In contrast, the Half-Sync/Half-Reactive thread pool described in the Example section must allocate each request dynamically from a shared heap because the request is passed between threads.

(R2b R2a ) . (R2a + R2b )

4 4 5

One of the chief advantages of the 802.11 suite of standards is that standardscompliant implementations are universally interoperable unlike cellular telephony where the proliferation of different standards renders interoperability among carriers dif cult or impossible. The major limitation of an 802.11 network is its limited range. Typical coverage ranges from 150 feet indoors to 300 feet outdoors, although these numbers vary greatly based on the frequency ranges used. It should be noted that longer ranges have been achieved in the neighborhood of 180 miles using special antennas. Thus, although some of the updated versions of 802.11 now include both infrastructure and ad hoc modes, range limitations restrict the usage of the 802.11-based networks for implementation of MANETs such as those envisioned for military deployments, or for use in disaster relief efforts, where the usage areas are typically spread over a large geographic region. 1.1.2.2 Handling Mobility. When a terminal (such as a laptop computer) connects to an access point, it typically obtains an IP address from the access

For example, consider a production facility whose capacity must be great enough to meet demand during the period of maximum demand The cost of operating the facility during any given period depends both on the level of production during that period and on the maximum of production levels over all periods Consider the provision of a single type of service that is consumed during each of T periods Demand in period t depends upon t and on the prices over all periods xt D xt p1 ; : : : ; pT / Thus, we model the idea that a greater price during one period can shift demand to other periods Suppose that the total cost of operating the facility takes the form X cx 1 ; : : : ; x T / D a xt C b max xt.

(1.138)

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