Which of the following best defines a negative network externality?
a. an increase in a consumer’s quantity demanded for a good because a greater
number of other consumers are purchasing the good
b. an increase in a consumer’s demand for a good because fewer consumers are
purchasing the same good
c. the costs involved in changing from one product to another brand or in changing
suppliers
d. the situation in which each firm is said to be doing as well as it can give the actions of
its competitors
b. an increase in a consumer’s demand for a good because fewer consumers are
purchasing the same good
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Which of the following statements is true?
A) When banks borrow from the discount window, it is an admission of trouble. B) The discount window is operated only in periods of economic expansion. C) The discount window is accessible only to well-performing banks. D) The discount window in the United States is operated by Citibank.
Game theory is used in a number of areas in economics. What is the primary reason that it is used in analyzing oligopoly type market structures?
a. The firms are producing a similar product b. The firms are producing differentiated products c. The demand curve facing the oligopolistic firms is perfectly inelastic d. The mutual interdependence of firms in industries with a small number of firms e. The demand curve the oligopolistic firm faces is downward sloping
Price discrimination means charging:
A. the same price to all buyers even if production costs are different. B. higher prices to women and minorities. C. different prices to different buyers for essentially the same good or service. D. different prices for different products because production costs are different.
In the elastic portion of the supply, small changes in prices lead to ________ changes in quantity, while in the inelastic portion of the supply curve, small changes in prices lead to ________ changes in quantity
A) small; small B) large; large C) small; large D) large; small