Network effects on the Internet:
A. help firms like Google and Facebook dominate their respective markets.
B. allow many firms to operate, making Internet markets highly competitive.
C. cause economies of scale to be exhausted quickly.
D. create a level playing field for all types of media, communication, and commerce on the
Internet.
Answer: A
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The monetary base is equal to the sum of coins,
A) currency and banks' reserves at the Federal Reserve. B) currency and checkable deposits at banks. C) currency, banks' reserves at the Federal Reserve and checkable deposits at banks. D) and checkable deposits at banks. E) U.S. government securities owned by the Federal Reserve and Federal Reserve notes.
Refer to the scenario above. If both firms operate to maximize profits, the:
A) total cost of production is minimized. B) total combined profits are minimized. C) marginal cost of both firms are minimized. D) marginal cost of both firms are maximized.
From the manager's perspective:
A) it is important to treat implicit costs as explicit in order to make sound strategic decisions. B) implicit costs are simply a theoretical construct and should be ignored in the decision-making process. C) only explicit costs matter because accounting profit is based on explicit costs. D) there is no difference between implicit and explicit costs. As such, treating implicit costs as explicit would result in double counting and an overstatement of total costs.
If price were $190, there would be a _____ (shortage or surplus) of _____.
