The Purchase of Instagram by Facebook Is an Example Of

question 16

Multiple Choice

The purchase of Instagram by Facebook is an example of:

• A) crowdsourcing.
• B) open innovation.
• C) innovation by acquisition.
• D) a new-venture fund.
• E) a skunkworks.

Explain the concept of asymmetric information and its implications for pollution abatement.

Understand the role and functioning of Pigouvian taxes.

Recognize the use of internet platforms and federal deposit insurance for mitigating information asymmetry and moral hazard.

Explain cap-and-trade systems and their effectiveness in pollution control.

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Definitions:

Initial Beliefs

The preexisting perceptions or assumptions held by an individual before being exposed to new information or experiences.

Judgments

Judgments are cognitive processes involving evaluation or estimation of something or someone, often influenced by personal experience, knowledge, and values.

Overconfidence

A cognitive bias characterized by an individual's belief that they are more accurate or capable than reality supports.

Illegal Drugs

Substances whose production, sale, or possession are prohibited by law due to their potential effects on users' health or society.