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a modem takes cable input and output goes to only 1 Ethernet cable. A router takes the 1 Ethernet cable and makes it so that you can hook up four or five Ethernet cables. a wireless router allows you to hook up 4 or 5 Ethernet cables and unlimited amounts of wireless receivers. If you only have 1 computer, you don't need a router. You only need 1 Ethernet cable.
To put it in simple terms :
Yes, many newer external modems have full router and firewall functionality built-in to a single device
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