Facebook is a social networking website that is used by a growing number of individuals. Because of its popularity, it is now more difficult for new networking websites to enter and compete with Facebook. Facebook enjoys ________ as a barrier for others to enter the market.
A. a network externality
B. price discrimination
C. a negative externality
D. economies of scale
Answer: A
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Which of the following is an example of government purchases?
A. The navy purchases a new ship for its fleet. B. Fred buys a new television set to watch the Super Bowl. C. Electric Car Incorporated increases the number of cars on its lots. D. The Black Coal Company sells $5 million of coal to Germany.
Refer to Figure 16.1. A decrease in the depreciation rate is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
The net present value of $1,000 received in the future would
a. decline if the $1,000 were received sooner. b. increase if the delivery date for the $1,000 were set farther into the future. c. decrease if the interest rate fell. d. decrease if the interest rate rose.
If an economic agent's returns to entrepreneurship is likely to be lower than his opportunity cost of entrepreneurship:
A) he will choose to be an entrepreneur. B) he will always make profits if he chooses to be an entrepreneur. C) he will always make losses if he chooses to be an entrepreneur. D) he will not choose to be an entrepreneur.