What happens when network externalities are present?
a. The usefulness of telecommunications equipment rises.
b. The usefulness of networks diminishes with the number of consumers who enter them.
c. The usefulness of a product increases with the number of consumers who use it.
d. The usefulness of a product decreases as the number of products rises.
c. The usefulness of a product increases with the number of consumers who use it.
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Assuming that the value effect dominates, the current account will increase if
A) the real exchange rate decreases. B) the real exchange rate increases. C) disposable income increases. D) exports fall. E) domestic prices fall.
Which of the following is consistent with increasing returns to scale?
a. An upward sloping marginal cost curve b. A downward sloping marginal cost curve c. An upward sloping long-run average cost curve d. A downward sloping long-run average cost curve
The Phillips Curve will shift because of:
A. expected inflation. B. normal inflation. C. hyperinflation. D. core inflation.
Ceteris paribus, an increase in the price of a good will cause the: a. quantity demanded of the good to increase
b. quantity supplied of the good to decrease. c. supply of the good to increase. d. consumer surplus derived from the good to decrease.