For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of
A) a switching cost.
B) the impact of negative market feedback.
C) limited-pricing behavior.
D) a network effect.
D
You might also like to view...
Constant returns to scale (CRS) implies that when the firm ________
A) doubles all inputs, output more than doubles B) doubles all inputs, output doubles C) doubles all inputs, output increases by less than 100 percent D) doubles all inputs, output remains constant E) none of the above
Which government policy is the principal focus of Ricardian Equivalence?
A) tax cuts B) government spending increases C) government borrowing D) seignorage
Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C
In most models of managerial conflict, the owner is the ________ and the manager is the ________.
A. employee; director B. principal; agent C. wage earner; stockholder D. resource; resource owner