In a two-sided market with network effects, the platform will most likely
A) set the same prices for the two sides of the market.
B) set different prices for the two sides of the market.
C) set a price of zero for both sides of the market.
D) combine the two groups of the market before setting its price.
B
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If weak aggregate demand is pushing the economy into recession, which of the following must be true?
A) The economy is at an equilibrium that is on the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) Contractionary monetary policies will push the economy back to the long-run Phillips curve. D) The economy is at an equilibrium that is on the long-run aggregate supply curve.
In a business cycle expansion, the ________ of bonds increases and the ________ curve shifts to the ________ as business investments are expected to be more profitable
A) supply; supply; right B) supply; supply; left C) demand; demand; right D) demand; demand; left
Which of the following is likely to have the most price inelastic demand?
a. strawberry-banana milk shakes b. gasoline in the short run c. diamond earrings d. box seats at a major league baseball game
Exhibit 21-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 In Exhibit 21-3, the United States has an absolute advantage in producing:
A. potatoes. B. wheat. C. both. D. neither.