Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities
b. the idea that some people receive utility from goods they believe are popular
c. income and substitution effects
d. switching costs
b. the idea that some people receive utility from goods they believe are popular
Economics
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What policy tool of the Federal Reserve relies on bank borrowing to be effective?
A. Open-market operations B. Check collection C. The reserve ratio D. The discount rate
Economics
Allocative efficiency occurs when price ______.
a. is above the ATC curve b. meets the ATC curve c. is less than marginal cost d. equals marginal cost
Economics