In a two-sided market with network effects, the platform will likely
A) charge a lower price for end users that are more affected by a positive market feedback.
B) charge a higher price for end users that are more affected by a positive market feedback.
C) charge a zero price for all end users regardless of the market feedback effects.
D) randomly charge end users.
Answer: B
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The cross-price elasticity of demand between rifles and bullets is likely to be
a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not substitutes
If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
A) a straight line. B) bowed outward. C) upward sloping. D) any of the above
The In The News article "Tesla Banks on Gigafactory" says that
A. The new plant will likely result in diseconomies of scale. B. The plan to build a gigafactory is a short-run production decision. C. The investment will be a variable expense. D. Teslas plan is a long-run production decision, and the company plans to enjoy economies of scale.
If the tax cost of this proposed project is $300 per person, a majority vote will
a. defeat this project and resources will be underallocated to it. b. pass this project and resources will be allocated efficiently. c. pass this project and resources will be overallocated to it. d. defeat this project and resources will be overallocated to it.