Network externalities
A) prevent the dominance of a market by one firm.
B) are created when celebrity endorsements of products lead to a surge in the demand for those products.
C) exist when the usefulness of a product increases with the number of consumers who use it.
D) can only exist when there are economies of scale.
C
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April quit her job as an accountant at Ernst and Young, where she was paid $45,000 per year. She started her own landscaping business. She rents machines and tools for $50,000 and pays $10,000 as wages to her hel
A) Her accountant calculates her profit as $40,000. B) She has an economic loss. C) Her explicit cost is $105,000. D) Both answers A and B are correct. E) Both answers A and C are correct.
If the people who take early retirement are not counted in the working-age population, then
A) the unemployment rate would be lower. B) the labor force participation rate would be less. C) the unemployment rate would be higher. D) the labor force participation rate would be higher.