Q. Which of the following is NOT an issue involving network externalities?
β
Correct Answer: (B)
the market may be to
Economics of Network Industries MCQs and Notes
Q. The profit level of a bank declines when it makes its ATMs available for the customers of a competing bank.
β
Correct Answer: (A)
TRUE
Q. Selling to libraries yields a higher profit to the publisher than selling directly to readers when:
β
Correct Answer: (C)
readers do not place a high value on owning the book.
Q. An increase in journal photocopying _ library’s value and hence funding, which in turn allows journal publishers to increase subscription fees.
β
Correct Answer: (B)
increases
Q. The amount of uncaptured consumer surplus when information is digital exceeds the amount of uncaptured surplus when information is printed
β
Correct Answer: (A)
TRUE
Q. Under either vertical or horizontal information reproduction, total surplus enjoyed by the η consumers is _.
β
Correct Answer: (B)
higher when information is digital compared with printed information.
Q. Section 170 of Copyright Act states: “the fair use of copyrighted work ... for purposes such as criticism, comment, newsreporting, teaching (including multiple copies for classroom use), scholarship, or research, is an infringement of copyright.”
β
Correct Answer: (B)
FALSE
Q. Information is reproduced if each agent (the provider and each consumer) makes one copy for the benefit of another consumer.
β
Correct Answer: (B)
Vertically
Q. In order to ensure that foreclosures will not take place, regulators should allow all service providers to sell the entire variety of telecommunication, broadcasting, and Internet services.
β
Correct Answer: (A)
TRUE
Q. In _ the government fails to extract all the rents associated with giving away the frequency band to the private sector.
β
Correct Answer: (B)
auction