Explain Microsoft Windows' monopoly positions in terms of network externalities
What will be an ideal response?
Microsoft marketed Windows really well and at some point a critical mass of people had it installed on their computers. Since a lot of people already used Windows it was beneficial for new consumers to buy it also, which fortifies Microsoft's position.
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When the total U.S. production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is
A) consumption goods and services. B) capital goods. C) government goods and services. D) export goods and services. E) capital goods and government goods and services tie for the largest component.
What does consumer surplus refer to?
a. the price a consumer actually pays for a good b. the cost of producing one additional unit of a good c. the difference between what a producer is actually paid for a good and the cost of producing one unit of that good d. the difference between what a consumer is willing and able to pay for an additional unit of a good and what he or she actually pays
How have antitrust laws been applied to monopoly since the 1980?
What will be an ideal response?
Normal profits are:
A. The profits reported by accountants on a firm's annual financial statement B. Identical to economic profits C. Determined by subtracting total costs from total revenues D. Considered an implicit cost by economists