When the snob effect exists, a change in price is likely to
A) change total revenue less than if there were no network externalities.
B) change total revenue more than if there were no network externalities.
C) change total revenue the same amount as if there were no network externalities.
D) not change total revenue at all.
A
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Investment spending includes spending on:
A. consumer durable goods. B. stocks and bonds. C. services. D. new capital goods.
An entrepreneur is considering how many limousines to purchase when he starts up a limousine service. Below are his estimates of the number of limousine rentals the service will make during a year, depending on the number of limousines available.Number oflimousinesTotal numberof rentals13502650390041,10051,250After paying all non-interest expenses, the owner expects to net $10 per rental. Each limousine costs $50,000. How many limousines should he purchase if the real interest rate is 4.5%?
A. 4. B. 2. C. 3. D. 1.
A big downside to deregulation was that the increased competition drove some firms out of business and many workers:
a. were laid off. b. went on strike. c. went over to the competition. d. stole company property.
The real balance effect helps to explain "a change in
A) aggregate demand." B) the quantity demanded of Real GDP." C) aggregate supply." D) the quantity supplied of Real GDP."