A bottleneck is a:
A. negative externality resulting from indirect network externalities.
B. positive externality resulting from congestion beyond the infrastructure capacity.
C. negative externality resulting from congestion beyond the infrastructure capacity.
D. positive externality resulting from network complementarities.
Answer: C
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Russia, Iran and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel for natural gas. Each of the countries can comply with the cartel agreement or to cheat on the cartel agreement
If all countries comply, the economic profit for each will be $140 million. If one country cheats, that country earns $200 million in economic profit and the other countries will have economic losses of $10 million. If all countries cheat, they break even. What are the strategies in this game? A) Comply with the cartel agreement or to cheat on the cartel agreement. B) Comply with the agreement and earn $140 million in profit. C) Cheat on the cartel agreement and earn -$10 million in profits. D) Earn between $140 and $200 million in profits.
Other things being equal, a rise in a country's terms of trade increases its welfare. What would happen if we relax the ceteris paribus assumption, and allow for the law of demand to operate internationally?
What will be an ideal response?
According to the above figure, the profit-maximizing price for the monopolist is
A) A. B) B. C) C. D) D.
Which of the following does not characterize a perfectly competitive firm that has shut down in the short run?
a. total revenue equals zero b. variable costs equal zero c. the firm suffers a loss d. fixed cost is positive e. fixed cost is zero