For network externalities to occur
A) the government has to create new laws.
B) deadweight loss must be minimized.
C) there must be a critical mass of users.
D) there must be a positive benefit to society.
C
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In early 2008, the housing crisis and rising oil prices increased the risk of recession in the United States. What fiscal policy action was taken by Congress and the president to counter these events?
A) Income taxes were raised to reduce the federal budget deficit and reduce interest rates. B) Taxpayers were given rebates on taxes they already paid. C) There was an increase in government spending on defense and unemployment compensation. D) The Federal Reserve cut its target for the federal funds rate.
Refer to Figure 18-1. Of the tax revenue collected by the government, the portion borne by producers is represented by the area
A) F + G. B) B + C. C) E + H. D) B + C + F + G.
Given the data in the above table, the marginal revenue curve
A) lies below the demand curve. B) lies above the demand curve. C) intersects the demand curve. D) is equal to the demand curve.
In perfect competition,
a. there are typically two or three equally powerful firms b. a large number of sellers offer a differentiated product c. the firm is a price taker d. marginal revenue cannot be calculated because the firm's demand is perfectly elastic e. the market demand and the firm's demand are perfectly elastic