48. A winner-take-all market a. is one in which the top producer or performer in
ID: 1115838 • Letter: 4
Question
48. A winner-take-all market
a. is one in which the top producer or performer in the market earns significantly more than others in the same market.
b. applies to the sports market and the entertainment market, exclusively.
c. the top producer earns all of the profits in that market.
d. a and b
e. b and c
____ 26. A network good is one whose value
a.
increases as the expected number of units sold increases.
b.
was created by the Internet.
c.
is dependent upon interconnection to another good.
d.
is defined by its links to other markets.
____ 27. Switching costs make it less likely that the consumer of a network good will shift to a different company's product. This is called the __________ effect.
a.
lock-in
b.
system
c.
Internet
d.
compression
a.
increases as the expected number of units sold increases.
b.
was created by the Internet.
c.
is dependent upon interconnection to another good.
d.
is defined by its links to other markets.
Explanation / Answer
A winner-take-all market is one in which the top producer or performer in the market earns significantly more than others in the same market.
The correct option is a.
A network good is one whose value increases as the expected number of units sold increases.
The correct option is a.
Switching costs make it less likely that the consumer of a network good will shift to a different company's product. This is called the lock-in effect. The consumer is locked in and will not shift to other product due to network effect.
The correct option is a.
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