Which of these is an example of a negative network externality?
A) Bandwagon effect
B) Pollution
C) Snob effect
D) Two-part tariff
C
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Answer the following statements true (T) or false (F)
1. As output increases, marginal cost increases, reaches a maximum, and then falls. 2. So long as marginal cost is rising, average variable cost must rise. 3. The principle of diminishing marginal returns is applicable only to the use of labor as a productive resource. 4. The principle of diminishing marginal returns says that as more and more units of a variable resource are added to a set of fixed resources, the resulting additions to output will become increasingly smaller and, eventually, larger. 5. The major factor accounting for dis economies of scale is management inefficiency.
As the price of milk increases, producers are normally willing to supply greater quantities. This response is known as the law of
a. supply b. demand c. averages d. variable proportions e. increasing costs
Unions, by nature, must ____ their membership in order to ____ wages
a. open; lower b. open; raise c. restrict; lower d. restrict; raise
After a $5 million ad campaign, Coca-Cola measured its effectiveness by calculating the cross elasticity of demand between Coke and Pepsi. A successful campaign would be indicated if the cross elasticity went from
a. 0.9 to 0.5. b. 0.9 to 1.5. c. ?0.5 to ?0.2. d. ?0.9 to ?1.5.