The External Benefit from a Network Externality Is Measured as the

question 36

Multiple Choice

The external benefit from a network externality is measured as the

• A) horizontal distance between the private and social demand curves.
• B) vertical distance between the private and social demand curves.
• C) horizontal distance between the private and social supply curves.
• D) vertical distance between the private and social supply curves.

---

Definitions:

Foreign Currency

Currency used in a country other than one’s own, involving the exchange of currencies in international trade or investment.

Exchange Rate

The price of one country's currency in terms of another currency.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time.

Strike Price

A term synonymously used with Exercise Price, indicating the fixed price at which an option holder can buy or sell the underlying asset.