Exam 14: Network Goods

(Figure: Network Market Curves) Based on the graphs, the curve marked D represents the demand curve for a network good.

If a musical artist wants to generate a network effect for its new album, which of these tactics would be LEAST effective?

Which statement is NOT true?

The market leader in a network industry is generally safe with its market share.

The reason someone can open a text document with either Microsoft Word or Google Docs is because of

The critical mass for a network good is also known as a tipping point.

When a consumer joins a network, she generates a(n)

(Figure: Market for a Network Good 2) The graph depicts the market for a network good. If demand fails to reach point _____, the company may _____ market share.

One example of peak-load pricing is when county fairs offer reduced admissions on weekdays before 4 P.M. because crowds are larger at night.

Network goods are usually provided by a single firm and do not allow for competition in the marketplace.

The network effect works in reverse if a consumer chooses to leave the network.

The speed by which a network good can enter into a virtuous or vicious cycle is generally _____ that of a non-network good.

Network compatibility is the physical linking of a network to another network's essential facilities.

Theme parks sell "fast-passes" to visitors who are less willing to wait in line. This would be BEST characterized as

In the following diagram representing peak-load pricing for a Broadway show, what is the off-peak equilibrium price and quantity? ​

The external benefit from a network externality is measured as the

(Figure: Understanding Network Good Markets) The graph depicts a market for a network good. The letter H represents the private demand curve.

Networks connected by fiber optics, transportation routes, or satellites are known as _____ networks.

The value of cloud storage has risen as more people use it. This effect is best described as a _____ effect.

Customers who purchase a network good after it matures are called _____ users.