31. Lots of Little Screens Inexpensive broadband access has created a generation of television producers for whom the Internet is their native medium. As they redirect the focus from TV to computers, cell phones, and iPods, the video market is developing into an open digital network. Source: The New York Times, December 2, 2007

a. How has inexpensive broadband changed the production possibilities of video entertainment and other goods and services?

b. Sketch a PPF for video entertainment and other goods and services before broadband.

c. Show how the arrival of inexpensive broadband has changed the PPF.

d. Sketch a marginal benefit curve for video entertainment.

e. Show how the new generation of TV producers for whom the Internet is their native medium might have changed the marginal benefit from video entertainment.

f. Explain how the efficient quantity of video entertainment has changed. Use the following information to work Problems 32 and 33. Before the Civil War, the South traded with the North and with England. The South sold cotton and bought manufactured goods and food. During the war, one of President Lincoln’s first actions was to blockade the ports and prevent this trade. The South increased its production of munitions and food.