why are consumers faced with advertising and loss of privacy when using facebook

Prompt: Most internet services (email, Facebook, Instagram, etc.) are provided for free – or, specifically, at no cost, but consumers are faced with advertising and loss of privacy. Provide an educated estimate of (a) how much consumers would have to be compensated in a market exchange; and (b) a pricing strategy that gives consumers the choice between a “free” service and a service with enhanced privacy.

1 page, single spaced, 12 pt font, times new roman

1 reference (Brickley, Smith and Zimmerman, Managerial Economics and Organizational Architecture 6th edition)

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