Which of the following statements is true?
A) Network effects arise because of economies of scale.
B) Economies of scale arise because of network effects.
C) Economies of scale act as barriers to entry into a market.
D) Network effects provide incentives to new sellers to enter the market.
C
Economics
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If the marginal social benefit of consuming a good or a service exceeds the marginal private benefit
A) a positive externality exists. B) a negative externality exists. C) the sum of consumer surplus and producer surplus is maximized. D) the market achieves economic efficiency.
Economics
An optimum that occurs as a corner solution
A) includes only one good. B) cannot be an equilibrium. C) cannot exhaust the budget constraint. D) includes the exact same amounts of each good.
Economics