Explain the concept of network externalities
What will be an ideal response?
A network externality is a situation in which the usefulness of a product increases with the number of consumers who use it.
You might also like to view...
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. After a specified amount of time, the player can become a free agent. This implies that, everything else equal,
A) the player's salary is probably higher as a free agent than as a reserve player. B) the player's salary is probably lower as a free agent than as a reserve player. C) the player's salary is probably the same as a free agent and as a reserve player. D) the free agent status is not granted to every player.
People make mistakes in allocating their time
a. because they always act irrationally b. despite always having expectations fulfilled c. only when leisure is a normal good d. because acquiring information is costly e. more often when the cost of making a mistake is high
Labor-market discrimination is evident when
a. wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity. b. wage rates differ for similar jobs. c. consumers prefer to shop at some stores, and not at others. d. wages reflect workers' human capital.
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A. Small time deposits such as certificates of deposit. B. Travelers’ checks. C. Currency held in banks. D. Currency in circulation.