Question

Please help with these questions

Question 29 0.4 pts A firm that produces a product that is characterized by externalities finds it easier to keep its customers from switching to rivals. O network O negative O positive O labor market O public good Question 30 0.4 pts An example of a tying arrangement is O a restaurant offering both Pepsi and Coca-Cola products. O a car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells two companies competing on price. O a coffee shop offering customers the option of having cream with their coffee for an extra 25 cents O a landlord offering free rent for the first month when a tenant signs a one-year lease. Question 31 0.4 pts If firms in a competitive market are incurring economic losses, we would expect firms to__the market, causing thecurve to shift to the enter; supply; left enter; demand; left O leave; supply; right O leave; demand; right leave; supply; left

Answer 1

1) A firm that produces a product that is characterized by network externality finds it easier to keep its customers switching to rivals.

2) An example of a tying arrangement is a car manufacturer installing expensive expensive onboard GPS in all the car it sells

3) If firms incur economic losses in the perfect competition then they leave the market in long run which will shift the supply curve to the left.

4) When resources are used to secure monopoly rights through the political process then the firms are rent seeking