Which of the following is an example of a network externality?
a. Amy sitting in her front yard enjoying the Fourth of July fireworks
b. People parked on Amy's street, making it difficult to walk on the street
c. Mary using LinkedIn to search for jobs, encouraging her friends to use it too
d. Allowing Delta Chemicals to use a natural lake to discharge waste
c
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The incidence of a tax pertains to:
A. the degree to which it alters the distribution of income. B. how easy it is to evade the tax. C. who actually bears the burden of a tax. D. the progressiveness or regressiveness of tax rates.
In the long run, a monopolistically competitive firm will set price:
A. at the intersection of the marginal cost and demand curves. B. at the intersection of the average total cost and demand curves. C. higher than the competitive level, but lower than the monopoly price. D. higher than the marginal cost, but lower than average total cost.