1.Due to the network externalities in the game console market, we would expect this market to
overproduce game consoles.
be highly concentrated.
be serviced by a natural monopoly.
2.Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmers marginal revenue to ________ and their profit maximizing level of output to ________.
3.The demand for Ben & Jerry's ice cream will likely be ________ the demand for dessert.
more price elastic than
less price elastic than
equally price elastic as
indeterminate from the given information.
4.When ________ substitutes exist, a firm in an imperfectly competitive industry has ________ power to raise price.
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