Exam 14: Network Goods

The short-run supply curve for a network good is horizontal because it is limited to the capacity of a firm's fixed investment.

Which of these is NOT a strategy used by firms selling network goods to gain new customers and to keep existing customers?

A network demand curve slopes upward at lower quantities and downward at higher quantities.

A strategy of making a single good in different versions to target different consumer markets with varying prices is

Network goods often foster a great deal of competition because firms wish to

A consumer who purchases a good only after the good has matured in the market and is more sensitive to price is a(n) _____ user.

The critical mass for a network good is also known as a(n)

Peak-load pricing focuses less on differentiating a product than does intertemporal pricing.

The subway system in Washington,

In what year did the U.S. government force AT&T to break up, launching serious competition among telephone providers?

(Figure: Market Equilibrium for a Network Good) Based on the graph, the price effect equals the network effect at point

Switching costs tend to be insignificant for network goods.

Which statement describes an example of a vicious cycle due to network effects in the market for a network good?

Which of these is NOT a way in which a publisher can use versioning on a textbook?

A portion of a network good's demand curve slopes downward, due to lower production costs.

If one firm in a relatively new network goes out of business, we expect the demand curve for the network good to

The tipping point for a network good is also known as

Way-to-Go Wireless offers different wireless plans for people with different needs, such as an unlimited monthly plan and a fixed-minute monthly plan. This is an example of

The demand curve for a network good indicates that as more people consume the good

AT&T offers high-speed Internet service to new subscribers for $29.99 per month for the first six months and then raises the price to $49.99 per month. This offer is an example of a(n)