A network externality is:
A) a direct effect on an economic decision maker.
B) an indirect effect on an economic decision maker.
C) the effect that an additional participant in an activity has on the value of that activity for others.
D) an uncompensated effect on someone other than the person who caused it.
Correct Answer:
Verified
Q8: Markets fail to maximize total surplus when:
A)individual
Q9: If people took external costs, such as
Q10: All externalities:
A)are harmful to society and create
Q11: External costs and external benefits are collectively
Q12: An external cost is typically referred to
Q14: The effect that an additional user of
Q15: When we add private benefits and external
Q16: A positive externality is a(n):
A)external benefit.
B)external cost
Q17: Which of the following is a good
Q18: Social costs are:
A)private costs plus external costs.
B)network
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