The higher the number of people who have access to e-mail, the more valuable it is to everyone. This is an example of a(n) ________
A) moral hazard
B) adverse selection
C) network externality
D) negative externality
C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. Speculators will sell futures contracts when they believe future demand will be lower than suppliers expect. 2. Diversification tends to raise the standard deviation of a portfolio. 3. Risk-averse investors choose to hold only two assets: a risk-free asset and a market portfolio 4. When faced with two portfolios that offer the same expected return, a risk-averse investor prefers the one with the higher standard deviation. 5. There is only one possible market portfolio-the portfolio consisting of all the risky assets in the economy.
A sole proprietorship is characterized by:
a. separation of ownership and management. b. mutual agency. c. existence of multiple contracts. d. unlimited liability.
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. How much profit is each firm making if fixed costs are $375 per firm?
What will be an ideal response?
The difference between personal income and disposable personal income is
A. personal income includes indirect business taxes while disposable income does not. B. disposable personal income is what is left after personal income taxes have been paid while personal income includes personal income taxes. C. personal income includes transfer payments while disposable personal income does not. D. personal income is what is left after personal income taxes have been paid while disposable income includes personal income taxes.