The Effect of Positive Network Externalities Can Be So Powerful

question 64

Multiple Choice

The effect of positive network externalities can be so powerful that it may even:

• A)create a natural monopoly.
• B)transfer deadweight loss to surplus.
• C)encourage competition and increase efficiency.
• D)None of these statements is true.

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Definitions:

Two-Party System

A political system dominated by two major parties, often leading to competition for power and influencing the political landscape of a country.

Proportional Representation

An electoral system where parties gain seats in proportion to the number of votes cast for them, as opposed to winner-take-all systems.

Two-Party System

A political system dominated by two major parties that alternately control government power, often to the exclusion of smaller parties.

Party Identification

The political party with which an individual identifies, often influencing their voting behavior and political opinions.