A network effect arises whenever
A) firms in an oligopolistic industry engage in limit pricing.
B) firms in an oligopolistic industry engage in a zero-sum game.
C) a consumer's willingness to purchase a good or service is influenced by how many others also buy or have bought the item.
D) a producer's willingness to produce a good or service is influenced by how many other firms also produce or have produced the item.
C
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Which of the following statements is true?
A) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ. B) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. C) Optimization in levels is based on ordinal analysis. D) Optimization in differences is based on marginal analysis.
The above figure shows the Lorenz curves for four different countries. If country C implemented a policy of redistribution from rich to poor, its Lorenz curve would
A) move toward country B's. B) move toward country D's. C) become positively sloped. D) move above the line of equality.
If one person has all the income and everyone else has none, the Gini ratio is zero
Indicate whether the statement is true or false
Most homeowner's insurance policies contain which of the following clauses?
A) A property improvement clause B) A coinsurance clause C) A co-ownership clause D) A property devaluation clause