A significant downside to network externalities is that
A) firms may network with unethical suppliers or distributors.
B) there may be large switching costs to firms changing technologies.
C) there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies.
D) the costs of using celebrity endorsements may be very high.
C
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Allocative efficiency occurs only at that output where
A. the areas of consumer and producer surplus are equal. B. marginal benefit exceeds marginal cost by the greatest amount. C. the combined amounts of consumer surplus and producer surplus are maximized. D. consumer surplus exceeds producer surplus by the greatest amount.
A production possibilities frontier is a graph that shows the combination of outputs that an economy should produce
a. True b. False Indicate whether the statement is true or false
Suppose a cut in government spending occurs that is at least partially unexpected. Explain what effect this will have on stock prices
What will be an ideal response?
Always Round Tire's new division, Start-up Batteries, finds that its total cost curve, TC = 300 + 2Q + 2Q2 and its demand curve, P = 130 ? 2Q. If the division is operated as an independent profit center, what will be the price and quantity sold each day? Will the division make a profit? If the division is operated purely as a revenue center, how many batteries will they sell each day? If the division is operated as a cost center and told to produce 20 batteries per day, what would be the cost per battery?
What will be an ideal response?