Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies. Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and
found
A) there is no convincing evidence that the alternative technologies were superior.
B) consumers sometimes do become locked into the use of products with inferior technologies.
C) that in all of these cases network externalities resulted in market failure.
D) that consumers use products with inferior technologies when their prices are lower than products with superior technologies.
Answer: A
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If the Fed increases the quantity of money, in the short run the ________ and in the long run the ________
A) nominal interest rate falls; the price level falls B) nominal interest rate falls; the price level rises C) price level rises; the nominal interest rate falls D) nominal interest rate rises; the price level falls E) nominal interest rate rises; the price level rises
Refer to Table 1-6. What is Ivan's marginal benefit if he decides to stay open for six hours instead of five hours?
A) $10 B) $20 C) $30 D) $91.67