When Network Externalities Are Present

question 20

Multiple Choice

When network externalities are present:

• A) we can obtain the market demand curve simply by summing individuals' demands.
• B) one person's demand also depends on the demands of other people.
• C) a person's demand cannot be affected by the number of other people who have purchased the good.
• D) the social cost of production is larger than the private cost.

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Definitions:

Socially Unstable Protest

Demonstrations or movements that arise in contexts of social instability, often reflecting widespread discontent or demands for change.

Collectivization

The process of transforming private assets or properties into collective ownership, typically under governmental or communal control, often associated with agricultural reforms in socialist contexts.

Collective Action

Activities undertaken by a group of people with the aim of achieving a common goal, often requiring coordination and cooperation among participants.

Consciousness

The state or quality of awareness where an individual is able to perceive, feel, and be cognizant of events, objects, thoughts, emotions, or sensory patterns.