Which of the following best defines a network externality?
a. the study of strategic interactions among economic agents
b. the costs involved in changing from one product to another brand or in changing
suppliers
c. a strategy that will be optimal regardless of opponents’ actions
d. when the number of other people purchasing the good influences quantity demanded
d. when the number of other people purchasing the good influences quantity demanded
You might also like to view...
Speculators make their profits on
a. price differences in different time periods. b. price increases from inflation. c. avoiding double taxation of income. d. the difference in interest rates on stocks and bonds.
If nominal GDP increased from $4 billion to $5 billion while real GDP increased from $3 billion to $4 billion, it follows that:
A. real output rose and price level fell. B. the price level and real output increased at the same rate. C. the price level increased at a faster rate than real output. D. the price level rose by 25 percent.
Spending on new goods and services out of a household's current income is
A. saving. B. consumption. C. investment. D. savings.
Assume that the home construction industry is perfectly competitive and is in long-run competitive equilibrium. It follows that:
A. firms in the industry enjoy economic profits. B. marginal cost exceeds long-run average total cost. C. marginal cost equals long-run average total cost. D. there will be incentive for new firms to enter the industry.