In a two-sided market with network effects, the platform will most likely
A. set the same prices for the two sides of the market.
B. combine the two groups of the market before setting its price.
C. set different prices for the two sides of the market.
D. set a price of zero for both sides of the market.
Answer: C
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The marginal revenue product of labor is
A) the marginal physical product multiplied by marginal revenue. B) the marginal revenue of output multiplied by the price of the input. C) total sales divided by total labor employed. D) total labor employed divided by total sales.
Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because each player had agreed before the game started to minimize the harm that he can inflict on the other players B) because each player is uncertain how other players will play the game C) because players must choose from a limited number of non-dominant strategies D) because each rational player has a dominant strategy to play a certain way regardless of what other players do