Use the Following to Answer Questions -Tony Has a Cell Phone,and His Service Provider Is Rogers

question 109

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Externalities from Parks }\\\begin{array} { c c c } \hline \begin{array} { l } \text { Quantity of } \\\text { Land (acres) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Benefit }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Cost }\end{array} \\\hline 0 & \$ 225 & \$ 0 \\1 & 200 & 50 \\3 & 150 & 150 \\4 & 125 & 200 \\5 & 100 & 250 \\9 & 0 & 450 \\\hline\end{array}\end{array}$$
-Tony has a cell phone,and his service provider is Rogers.When he calls his wife,Meleah,who is also a Rogers customer,he does not have to pay for those minutes.The more Rogers customers there are in the market,the more benefit Tony receives.This is:

• A) a network externality.
• B) the Coase theorem.
• C) a Pigouvian subsidy.
• D) a technology spillover.

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Definitions:

Inference Forms

Inference forms refer to the logical structures that showcase how conclusions are derived from premises.

MP

Abbreviation for Modus Ponens, a form of argument where if 'P implies Q' and 'P' is asserted to be true, then 'Q' must be true.

Inference Forms

Patterns or structures of logical reasoning that derive conclusions from premises based on rules.

MP

An abbreviation for Modus Ponens, a form of argument in logic where if a conditional statement ("if P, then Q") is accepted, and the antecedent P holds, then the consequent Q logically must also hold.