A network externality occurs when:
A. a firm has a patent.
B. the value of a product to a consumer increase with the number of other consumers who use it.
C. a firm has large economies of scale.
D. the value of a product to a consumer requires another product.
Answer: B
You might also like to view...
Which of the following countries experienced hyperinflation during the 1920s?
A) The United States B) Canada C) Germany D) England
Which of the following is an example of a measure of labor productivity?
A) Farm workers produce 30 bushels of wheat per worker per day. B) Autos get 30 gallons to the mile. C) The growth rate of per capita real GDP is 3.5 percent per year. D) Wages increase by 3.5 percent per year for 5 years.
The short-run Phillips curve could shift to the left as a result of either ____ or ____
a. rising oil prices; increasing inflation expectations b. rising wages; falling prices c. declining oil prices; falling inflation expectations d. falling wages; rising prices
Suppose a change in technology increases the marginal product of labor. The result is
a. a downward movement along the demand for labor curve. b. a rightward shift in the demand for labor curve. c. a leftward shift in the demand for labor curve. d. an upward movement along the demand for labor curve.