Author Question: Which of the following is used to explain why a consumer's willingness to buy a cell phone increases ... (Read 93 times)

futuristic

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Which of the following is used to explain why a consumer's willingness to buy a cell phone increases as the number of other people who own and use cell phones increases?
 
  A) network externalities B) diminishing marginal utility
  C) market failure D) the income effect of a price change

Question 2

Assuming zero transactions costs, if your local grocer buys oranges at a low price from an orchard and resells them to you at a higher price, then the grocer's revenue minus costs is known as
 
  A) transactions profits. B) pure profits.
  C) excess profits. D) arbitrage profits.


mariahkathleeen

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Answer to Question 1

A

Answer to Question 2

D



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