What does it mean to say that a good generates network externalities?
What will be an ideal response?
For a good with network externalities, the value of the good to any particular consumer increases as more customers begin to use it. For example, the value to you of being on Facebook is higher the more people who use Facebook. Therefore by acquiring a large customer base, a particular firm may acquire market power.
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If an investment of $100 million from the United Kingdom is made in the United States, the $100 million is listed as a ________ entry in the ________ account
A) negative; current B) negative; capital and financial C) positive; capital and financial D) positive; official settlements E) positive; current
The value of the multiplier changes if the ________ changes
i. marginal tax rate ii. marginal propensity to import iii. marginal propensity to consume A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
The statement "Households maximize utility" means that households
a. try to be as useful as possible to the economy b. are only interested in maximizing their earnings c. are assumed to buy useful things before they buy luxuries d. are only interested in acquiring material wealth e. are assumed to do what they think will increase their satisfaction
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $9. What does profit equal when quantity equals 3?
A. $13 B. $6 C. $10 D. $2