An example of a good that creates a positive network externality is:
A. the telephone.
B. social network websites (e.g. Facebook).
C. a workers’ union.
D. All of these are examples of good that create positive network externalities.
D. All of these are examples of good that create positive network externalities.
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Leisure is
A) wasteful to society. B) an inferior good. C) a complementary good to labor. D) a normal good.
In a closed economy, the goods market is in equilibrium when
A) Y = S + I + G. B) C + S = I + G. C) C + I = S + G. D) Y = C + I + G.
The gambler's fallacy:
A. is the belief that if an event has ever occurred, it is less likely to repeat. B. is the belief that once an event has occurred, it is less likely to repeat. C. is the belief that once an event has occurred several times in a row, it is more likely to repeat. D. is the belief that if an event has never occurred, it is more likely to occur.
To avoid subsidies, the government should cap the price for natural monopolies at their:
A. marginal cost. B. average total cost. C. average variable cost. D. fixed cost.