How can network effects lead an industry to become an oligopoly?
What will be an ideal response?
If a few firms selling products subject to network effects can differentiate them from other products, and if the products from these few firms experience positive market feedback, then that group of firms will capture the bulk of industry sales. Consequently, oligopoly is likely to emerge as the prevailing market structure.
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For a normal distribution, the skewness and kurtosis measures are as follows:
A) 1.96 and 4 B) 0 and 0 C) 0 and 3 D) 1 and 2
The supply of bonds to the bond market
a. is positively related to the demand for stocks b. is inversely related to the interest rate c. is positively related to income d. is positively related to the demand for bonds e. only changes if new bonds are issued
A patent
A. is both a right granted to an inventor by the government to be the exclusive seller of a good and makes a good that has recently been invented more expensive than it would otherwise be. B. makes a good that has recently been invented more expensive than it would otherwise be. C. is a right granted to an inventor by the government to be the exclusive seller of a good. D. makes inventing the good less appealing.
Assuming that investment, government expenditures, and net exports are all autonomous, the marginal propensity to consume for the economy represented in Figure 9.9 is
A. 0.25. B. 1.0 since aggregate expenditure is a straight line. C. 0.5. D. Indeterminate since there is no consumption function.