When consumers are not identical, a market failure may occur when

Related MCQs

• Entry into the telecommunication industry                  the utility of the already connected consumers whereas the utility of newly connected consumers _.
• The firm with the higher market share under incompatibility earns _ under incompatibility whereas the firm with the smaller market share under incompatibility earns _ under compatibility.
• An increase in consumers’ preference for variety of software .
• Support-oriented consumers would prefer buying software over pirating software                                 .
• The at a price (connection fee) p0 is the minimal number of customers needed to ensure that at least this number of consumers will benefit from subscribing to the service at the fee p0.
• Under either vertical or horizontal information reproduction, total surplus enjoyed by the η consumers is                                         _.
• Suppose that the incumbent and the entrant in the long-distance phone call market compete in prices (rates). Then,                                         _.
• Which of the following is NOT an issue involving network externalities?
• Network industries does not include                       _
• When consumer preferences exhibit international network externalities, both countries are better off when both countries mutually recognize foreign standards than when both countries do not recognize foreign standards.