Suppose that a one-way network leads to the development of a number of new complementary products and services. This phenomenon is known as:
A. an indirect network externality.
B. a reputation effect.
C. a direct network externality.
D. lock-in.
Answer: A
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A general medium of exchange tends to
A) reduce transaction costs. B) make bartering more effective. C) reduce the incentive to specialize and pursue one's comparative advantage. D) accomplish all of the above. E) accomplish none of the above.
Total revenue earned from the sale of a good is:
A) the price at which the good is sold. B) the difference between price and cost of production of the good. C) the product of price and quantity of the good sold in the market. D) the product of cost of production and quantity of the good sold in the market.
In the United States, the long-run inflation target is ________
A) undisclosed B) currently set at 7% C) currently set at 2% D) currently set at minus 1%
Microeconomics is defined as that part of economic analysis that
A. studies the behavior of the economy as a whole. B. studies individual decision making by households and firms. C. concerns aggregate production and consumption. D. includes the problems of inflation and unemployment.