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First, what is the definition of network externalities? Second, think about your phone. Imagine the situation where you could only call/text/contact other people who have the SAME phone provider you have: Verizon customers can only contact other Verizon customers; Sprint customers can only contact other Sprint customers, etc. What exactly does that have to do with network externalities? And third, would you be willing to operate under that scenario (Verizon-people-can-only-call-Verizon-people) if it meant your phone bill was cut in half every month? Why or why not?
q1. the demand for good x is estimated to be qxd 10 000 - 4px 5py 2m ax where px is the price of x py is the price
Illustrate what is the economic profit (or loss) of Texas Citrus Company in the short run. Do new orange growers enter the market in the long run.
David gets $3 per month as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0:05 per ounce) and jelly (at $0:1 per ounce). Bread is provided free of..
You have borrowed $25,000 at an interest rate of 16%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the the first year). What will be the annual payment?
Explain how, despite being free, public education can actually make a household better off by consuming less education?
If you were desinging such an amendment, do you think it would be better to require that the actual budget deficit be kept at zero each year, or should the aim be only to keep the structural deficit at zero? Discuss.
A firm is trying to decide whether to have a centralized warehouse or regional warehouses. A centralized warehouse would be cheaper than four regional warehouses, but the expenses for shipping would be higher with a centralized warehouse. If the firm..
Compute Opulenzas current account. Is CA a deficit or a surplus. Explain intuition for C4 deficit/ surplus in terms of savings in Opulenza, financial flows and its domestic/external wealth position.
The key condition for equilibrium to occur in a market is: Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?
The foregone value associated with the correct rather than the next best use of a given asset is called" a.) Opportunity cost b.) replacement cost c.) historical cost d.) currect cost What is the correct answer
Using economic analysis and the guiding principles of sustainability, between the farmer subsidy solution and the principles of sustainability solution, justify which solution is best? Why?
Calculate the MRS or the marginal rate of substitution between X and Y. How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?
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