A network effect exists whenever
A) a firm's willingness to produce a particular good or service is influenced by the costs of inputs it must utilize in order to manufacture the item.
B) a consumer?s willingness to purchase a particular good or service is influenced by how many others also buy or have bought the item.
C) a firm's willingness to purchase a particular factor of production depends on the other types of inputs it utilizes to manufacture an item.
D) a consumer's willingness to purchase a particular good or service is influenced by the prices of other complementary or substitute items.
B
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If one person has all the income and everyone else has none, the Gini ratio is 1
Indicate whether the statement is true or false
ABC Co sells newly issued bonds. JLG Co sells newly issued stocks. Which company is raising funds in financial markets?
a. only ABC b. only JLG c. both ABC and JLG d. neither ABC nor JLG
Over the last 50 years, the poor have:
A. become richer at the same rate as the rich, and so inequality has stayed the same. B. become richer at a slower rate than the rich, and so inequality has grown. C. become poorer, while the rich have become richer, and so inequality has grown. D. become richer at a slower rate than the rich, and so inequality has decreased.
In the Internet search market:
A. Yahoo, Bing, and Google have roughly equal market shares. B. the Herfindahl index value is 10,000. C. Google holds about 70 percent of the market, while Bing and Yahoo together comprise about 28 percent. D. government subsidies ensure that search engines are provided at no cost to all Internet users.