Which of the following statements correctly identifies a similarity between network effects and economies of scale?
A) Both are related to costs incurred by a firm.
B) Both act as barriers to entry in a market.
C) Both act as disincentives to monopolies.
D) Both are related to the number of consumers using a firm's product.
B
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Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was ________ times larger, while real GDP per person in Japan was ________.
A. 12; 30 times larger B. 12; smaller C. 30; 12 times larger D. 12; 12 times larger
When the price per ticket is P*, there are empty seats at a university’s basketball arena. From this, we can conclude that
A. P* is greater than the equilibrium price. B. P* is less than the equilibrium price. C. P* is the equilibrium price. D. it’s not possible to determine anything about the equilibrium price with this information.
Economist Alban William Phillips believed that: a. the Fed should follow a policy rule because it does not know the lag structure. b. the Fed should follow a policy rule to avoid monetary surprises
c. there is an inverse relationship between inflation and unemployment. d. private sector spending is inherently unstable. e. government spending is inherently unstable.
If a firm is a price taker, it operates in a
a. competitive market. b. monopoly market. c. oligopoly market. d. monopolistically competitive market.