In a two-sided market with network effects, the platform will likely
A) charge a lower price for end users that are more affected by a positive market feedback.
B) charge a higher price for end users that are more affected by a positive market feedback.
C) charge a zero price for all end users regardless of the market feedback effects.
D) randomly charge end users.
Answer: B
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If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
a. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase. b. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease. c. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase. d. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease. e. The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.
When consumers or producers do not bear the full cost of their economic decisions, they tend to produce or consume more than they otherwise would
a. True b. False Indicate whether the statement is true or false