Network Goods
Multiple Choice Questions
After watching the Network Goods video lecture, consider the question(s) below. Then “submit” your response.
Question
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Question
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Question
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Question
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Question
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Question
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Question
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After watching the Network Goods video lecture, consider the question(s) below. Then “submit” your response.
Question
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Question
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
Question
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
Short Answer/Discussion Questions
After watching the Network Goods video lecture, consider the question(s) below. Then “submit” your response.
Question
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Suggested solution: A social network, from an economist’s standpoint, has elements of both a physical network and a virtual network. The virtual element is that Facebook users are using the same social media platform for the connection. The physical element is that most users establish Facebook connections with individuals and businesses with whom they have interactions outside the platform – friends, relatives, and so on. (Answers may vary.)
Question
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Suggested solution: When cell phone companies require a two year contract, or a cable company provides a discount for buying Internet service as well as cable TV service, the companies are trying to require (contract) or entice (bundle discount) customers to stay with the firm as long as possible. This is so the firm can derive the network effect benefits from the customer as long as possible. (Answers may vary.)
Question
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Suggested solution: This is a form of advertising that is designed to use word of mouth and social media to promote the upcoming album. The strategy is to create excitement about the music and also to create a desire to own the album. This increases the demand for the album and increases the expected sales. (Answers may vary.)