The QWERTY story illustrates:
a. the commons problem
b. a negative network externality.
c. the path dependence to technology.
d. the problem of adverse selection.
e. a situation of moral hazard.
c
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An exclusive right to sell a new and useful product, process, substance, or design for a fixed period of time is called a
A) patent. B) barrier to entry. C) monopoly. D) research disincentive.
Which of the following conditions best explain the short-run economies of operation associated with production of an information product?
A) AVC slopes downward, and AFC is constant, so that ATC slopes downward. B) AVC is constant, and AFC slopes downward, so that ATC slopes downward. C) AFC is constant, and MC slopes downward, so that AVC slopes downward. D) MC is constant, and MC slopes upward, so that AVC slopes upward.