In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly if
A) they engage in a zero-sum game.
B) they use a price-leadership model.
C) they use a kinked demand curve model.
D) a few firms reap most of the sales gains resulting from positive market feedback.
Answer: D
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Exchange rates are determined in
A) the money market. B) the foreign exchange market. C) the stock market. D) the capital market.
By adding internal costs to external costs, we determine the total
A) private cost. B) social cost. C) psychological cost. D) marginal cost.
“Fair” outcomes and “efficient” outcomes are always identical.
Answer the following statement true (T) or false (F)
In a partnership
A. each partner's liability is limited to their investment in the company. B. profits are taxed at both the corporate rate and the personal income tax rate. C. there is a separation of ownership and management like in a corporation. D. upon the death of a partner it may be necessary to sell the business.