Network effects and simultaneous consumption tend to foster the development of:
A. Pure competition
B. Monopoly power
C. Net social benefits
D. Allocative efficiency
B. Monopoly power
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If a macroeconomic model consists of upward-sloping short-run aggregate supply and downward-sloping aggregate demand, can it possibly generate a constant real GDP with no business cycles over time?
A) No, only a vertical short-run aggregate supply curve can produce that result. B) No, only a horizontal short-run aggregate supply curve can produce that result. C) Yes, but the short-run aggregate supply curve must never shift. D) Yes, if the aggregate demand and short-run aggregate supply curves shift in perfect unison.
The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour.Calls PerHourNumber ofTelephonesPer HourNumber ofWorkersPer Hour0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225If the price of a telephone increases to from $5 to $10 an hour and nothing else changes, then:
A. total cost would not change. B. marginal cost would not change. C. fixed cost could not change. D. marginal cost would increase by $5 at every level of output.
Evidence suggests that business owners are generally
a. interested in profits only when discrimination is illegal. b. more interested in discrimination than in making a profit. c. unable to determine the link between discrimination and profitability. d. more interested in making a profit than in discriminating against a particular group.
If computers and software are complements, then
A) a fall in the price of computers will increase the demand for software and, ceteris paribus, the price of software will rise. B) a rise in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will rise. C) a fall in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will fall. D) a rise in the price of software will increase the demand for computers and, ceteris paribus, the price of computers will rise. E) a fall in the price of software will decrease the demand for computers and, ceteris paribus, the price of computers will fall.