The term "network externality" refers to a barrier to entry that exists because:
A) the value of the product to a consumer depends on the number of consumers using the product.
B) a group of firms has divided the market into interconnected shares controlled by each firm.
C) several firms are able to network with each other and control the market.
D) consumers are unable to network, i.e., cooperate, with each other to control market price.
A
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The main losers from inflation are those who
a. have significant assets in real property b. have fixed incomes c. have put their money in foreign banks d. sell products that have a quick turnover e. none of the above
The demand for classical music is _______________ than is the demand for Beethoven's music because _______________.
A. less price elastic; classical music requires a smaller portion of one's income B. more price elastic; classical music requires a smaller portion of one's income C. less price elastic; the scope of the market for classical music is more broadly defined D. more price elastic; the scope of the market for classical music is more broadly defined
The tax burden will fall most heavily on buyers of the good when the demand curve
a. is relatively steep, and the supply curve is relatively flat. b. is relatively flat, and the supply curve is relatively steep. c. and the supply curve are both relatively flat. d. and the supply curve are both relatively steep.
Suppose two variables are directly related. If one variable rises, then the other variable:
a. remains unchanged. b. falls. c. also rises. d. reacts unpredictably.