The network effect in the TV broadcasting industry results in
A. a positive market feedback between the number of advertisers and the number of TV channels.
B. a negative market feedback between the number of advertisers and the size of TV audience.
C. a negative market feedback between the number of advertisers and the number of TV channels.
D. a positive market feedback between the number of advertisers and the size of TV audience.
Answer: D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)
The demand curve facing the monopolistically competitive firm is:
A. flat. B. vertical. C. U-shaped. D. None of these statements is true.
The laws governing patents and copyrights
a. promote monopolies. b. are intended to serve private interests, not the public's interest. c. have costs but not benefits. d. eliminate the need for firms to engage in research and development.