Due to the network externalities in the game console market, we would expect this market to
A. be serviced by a natural monopoly.
B. be highly concentrated.
C. be efficient.
D. overproduce game consoles.
Answer: B
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Refer to Excise Subsidy. Which areas count as part of the measure for both consumer's surplus and producer's surplus?
The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. areas A, B, E and H.
b. areas B, E and F.
c. areas B and E.
d. no areas can count as part of the measure for both.
A production function describes the
A) technological possibilities for converting factor inputs into outputs. B) intellectual possibilities for converting factor inputs into outputs. C) amount of resources available to the representative firm. D) actual process of converting factor inputs into outputs.
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, which option would David like to see voted on first?
A. Library and computer lab
B. Computer lab and gym
C. Gym and library
D. It doesn’t matter which options are considered first.
A monopolist faces a horizontal demand curve while a perfect competitor faces a downward sloping demand curve for their respective products
Indicate whether the statement is true or false