Some economists argue that Microsoft become a monopoly in the market for computer software by developing MS-DOS, an operating system used for the first IBM personal computers
The more people who used MS-DOS-based programs, the greater the usefulness of a using a computer with an MS-DOS operating system. The explanation for Microsoft's monopoly is
A) the development of new technology that other firms could not copy.
B) network externalities.
C) patents Microsoft obtained when it developed the MS-DOS operating system.
D) control of a key resource which, in this case, is the MS-DOS operating system.
B
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When the nominal interest rate rises, the quantity of money demanded decreases because
A) people will buy fewer goods and hence hold less money. B) the price level also rises and people decrease their demand for money. C) people shift funds from interest-bearing assets into money. D) people shift funds from money holdings to interest-bearing assets.
A firm can minimize cost by
A) picking the bundle of inputs where the lowest isocost line touches the isoquant. B) picking the bundle of inputs where the isoquant is tangent to the isocost line. C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input. D) All of the above.