As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect.
B) proves that the fax machine is an inferior good.
C) proves that the fax machine is a luxury good.
D) is an example of a positive network externality.
E) is an example of a negative network externality.
D
Economics
You might also like to view...
If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is
A) nonrival. B) nonexcludable. C) pure. D) free.
Economics
Discuss the second welfare theorem. How can societies use competitive markets to achieve both efficiency and equity?
What will be an ideal response?
Economics