Although some economists believe network externalities are important barriers to entry, other economists disagree because
A) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of economies of scale.
B) they believe that most examples of network externalities are really barriers to entry caused by the control of a key resource.
C) network externalities are really negative externalities.
D) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences.
D
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The interest rate is the opportunity cost
A) of investing in stocks. B) of investing in Treasury securities. C) of using credit cards. D) of holding money.
Refer to the following graph.
The perfectly competitive firm depicted is currently:
A. incurring a loss that is larger than total fixed cost, and so the firm should shut down. B. earning positive economic profit. C. incurring a loss, but the loss is smaller than the firm's total fixed cost. D. earning zero economic profit.