Explain the different sources of negative network externalities
Negative network externalities may be a result of the snob effect. The snob effect is a negative network externality where a consumer wants to own a unique good. Negative network externalities can arise from congestion.
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Suppose that Canada can produce 15 units of timber or 3 units of grain. Suppose that Mexico can produce 6 units of timber or 2 units of grain. Which of the following is CORRECT?
A) Mexico has a comparative advantage in grain production. B) Mexico has an absolute advantage in timber production. C) Canada has a comparative advantage in grain production. D) The countries would find trade mutually beneficial at a trading ratio of 1 grain for 2 timber.
Which of the following is not an example of a business operated by a consumer cooperative?
a. grocery store b. apartment building c. Sunkist, a farm cooperative owned and operated by citrus growers d. health plan e. electric power facility