Network externalities:
A. weaken forces that lead to monopoly in an industry.
B. increase the likelihood that an industry will become a winner-take-all industry.
C. promote the entry of new firms in a market.
D. increase competition among existing firms in a market.
Answer: B
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Refer to Table 2-12. Guatemala has a comparative advantage in the production of
A) sailboats. B) canoes. C) both products. D) neither product.
Product differentiation causes the seller of a good to face what type of demand curve?
a. downward sloping b. vertical c. horizontal d. Any of the above could be correct since product differentiation does not affect the shape of the demand curve.
Which of the following is counted as "capital" in economics?
A) the money people have B) the wealth people have C) the machines workers have to work with D) the labor force
U.S. job losses cited by anti-trade critics
A. are mostly a short-term problem in isolated industries. B. are mostly due to poor training by U.S. firms. C. affect only capital-intensive U.S. industries. D. are non-existent.