A network externality refers to a situation where: A) the ...

[jCorn1234]

A network externality refers to a situation where:
 
  A) the value of a product increases as more consumers start to use it.
  B) firms collude to sell products at a price higher than the equilibrium market price.
  C) a firm that has control over key resources auctions the resources off to other firms.
  D) the government interferes to prevent the concentration of market power in the hands of a few firms.

Question 2

How does the text distinguish between government and the market?
 
  A) The government is the place around the capital city; the market is everywhere else.
  B) The government is populated with publicly-spirited people; the market is populated with selfish people.
  C) The government is based on cooperation; the market is based on competition.
  D) In all of the above ways.
  E) In none of the above ways.

[scrocafella]

Answer to Question 1

A

Answer to Question 2

E