Question

In: Economics

The difference in price between hardback books and paperbacks is MOSTLY due to differences in production...

The difference in price between hardback books and paperbacks is MOSTLY due to differences in production costs. *

True

False

Instagram is a social networking Web site that is used by a growing number of individuals. Due to its popularity, it is now more difficult for new networking websites to enter and compete with Instagram. Instagram enjoys __________ as a barrier for others to enter the market. *

a network externality

price discrimination

a negative externality

economies of scale

Solutions

Expert Solution

1. The difference in price between hardback books and paperbacks is MOSTLY due to differences in production costs. True


A paperback is a type of book made from thick paper or paperboard cover and pages are attached to the binding with glue. It is more cheaper to the consumer.


Whereas, hardcover or hardback books have covers made from cardboard covered with cloth,plastic or leather. Hardback books have pages, glued into the spine, making easier for the reader to open. So it is more costlier than paperback book.


In terms of printing cost, hardcover book printing is more expensive than paperback book printing.

2. Instagram is a social networking Web site that is used by a growing number of individuals. Due to its popularity, it is now more difficult for new networking websites to enter and compete with Instagram. Instagram enjoys a network externality as a barrier for others to enter the market.

Network externalities refer to the effects a product or service has on a user when other users are using the same or compatible products or services. It's an event whereby large numbers of people improve the value of a good or service.


Instagram is an example of the network externality. Initially, there were few users on the Instagram since it was little value to anyone outside the business. However, as more users started using Instagram, it gained popularity and restricts other networking websites to enter and compete with Instagram. So, Instagram enjoys a network externality as a barrier for others to enter the market.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Float: The difference between the cash balance on bank’s books and firm’s books due to timing....
Float: The difference between the cash balance on bank’s books and firm’s books due to timing. –Delay in the payment of checks –Delay in clearing of deposits Positive: Bank Balance > Firm’s Balance Negative: Bank Balance < Firm’s Balance Management's Goal: –Speed collection and slow disbursements Components of float: –Mail Float – Customer to Company –Processing Float – Company Records and Deposits –Check Clearing Float – Deposit Clears and Available Float can be reduced or eliminated for a cost. Required:...
a) Assuming that the frequency of oscillation is due to the difference in energy between the...
a) Assuming that the frequency of oscillation is due to the difference in energy between the 2p and 1s states of the H atom, and that the amplitude of oscillation is about one Bohr radius, estimate the rate at which energy is classically radiated in eV/s. b) Estimate the classical time it takes for this atom to radiate the energy difference between these two states.
a) Assuming that the frequency of oscillation is due to the difference in energy between the...
a) Assuming that the frequency of oscillation is due to the difference in energy between the 2p and 1s states of the H atom, and that the amplitude of oscillation is about one Bohr radius, estimate the rate at which energy is classically radiated in eV/s. b) Estimate the classical time it takes for this atom to radiate the energy difference between these two states.
Explain the difference between an ordinary annuity and an annuity due.
Explain the difference between an ordinary annuity and an annuity due.
What is the functional difference between ventricular hypertrophy due to exercise and hypertrophy due to congestive...
What is the functional difference between ventricular hypertrophy due to exercise and hypertrophy due to congestive heart failure?
The technical differences between tax law and account are: a. There is no difference in the...
The technical differences between tax law and account are: a. There is no difference in the way income and expendicture is dealt with by tax law and the under the principles of accounting. b. Not all receipts are recognised for tax purposes, Income tax law excludes some income and expenses for policy reasons, it ignores some transactions on the basis of ant-avoidance provisions and timing rules differ in income tax law and under accounting principles c. Tax law is based...
Explain the difference between production in the short run and production in the long run.
Explain the difference between production in the short run and production in the long run.
What are the differences between (a) the negative impact on the images due to lenses, mirrors,...
What are the differences between (a) the negative impact on the images due to lenses, mirrors, atmosphere, sensor, and photon noise? (b) Pre-Processing and Post-Processing (c) Wavelet, Fourier transform, and convolution
Identify and contrast the differences between the rise in prices due to inflation and the rise...
Identify and contrast the differences between the rise in prices due to inflation and the rise in prices in microeconomic markets. Provide examples and explain your answer.
Leadership Styles There are many articles and books written about the differences between managers and leaders....
Leadership Styles There are many articles and books written about the differences between managers and leaders. Leaders are visionary, influential in positive ways, value their teams, support their growth, and empower their staff. Leaders who are positive in their actions coach, delegate, and share recognition. Read the following scenarios and answer the questions given in each scenario. Scenario A Consider a time when you had the experience of being led by someone who was able to get you to achieve...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT