Network externalities
A) prevent the dominance of a market by one firm.
B) are created when celebrity endorsements of products lead to a surge in the demand for those products.
C) exist when the usefulness of a product increases with the number of consumers who use it.
D) can only exist when there are economies of scale.
C
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Refer to Figure 12-4. If the market price is $30, the firm's profit-maximizing output level is
A) 0. B) 130. C) 180. D) 240.
Which of the following is the most accurate statement?
a. The one argument for restricting trade that almost all economists accept as valid is the infant-industry argument. b. Almost all economists insist that it is never appropriate to protect "key" industries, even when there are legitimate concerns about national security. c. The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade. d. The protection-as-a-bargaining-chip argument for restricting trade is also known as the infant-industry argument.
Smithson Pottery is considered a regular exporter because the firm fills unsolicited orders from foreign buyers and passively investigates international trade options.
a. true b. false
The main reason barter is extremely inefficient is that:
A. it can have very high transactions costs associated with it. B. you have to find someone who both has what you want and wants what you have. C. people and firms have to spend a lot of time looking for mutually agreeable trades. D. All of these are true.