A network externality exists
a. in the television industry
b. outside the television industry
c. whenever an increase in the size of a network increases its value to current and potential members
d. whenever an increase in the size of a network increases its average total cost of production
e. whenever an increase in the size of a network increases its total cost of production
C
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________ attempts to reduce negative externalities by ________
A) Negotiation; discovering who has which rights B) Negotiation; creating new rights C) Legislation; creating new rights D) Legislation; discovering who has which rights
Refer to Scenario 17.2. The highest level of y* that can be set and still have the high-productivity people choose to meet it is
A) 90. B) 60. C) 30. D) 22.5. E) 15.
If the supply curve for land was a vertical line, then any payment made for land would be considered
A. as an opportunity lease payment. B. as economic lease. C. as economic rent. D. as economic interest.
Relative to a profit-maximizing competitively organized industry that is producing 3,000 units of output at a price of $5 per unit, a monopoly under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. 3,000; $5 B. less than 3,000; more than $5 C. more than 3,000; more than $5 D. less than 3,000; less than $5