In 50 words, answer the following question: In class, we talked about how social media is a common resource. Do you think the providers of social media forums should regulate the behavior of users? If not, why not? If so, how? (Hint: think economically. How could the providers (not) solve the problems with common resources by regulating?)

In 50 words, answer the following question: In class, we talked about how social media is a common resource. Do you think the providers of social media forums should regulate the behavior of users? If not, why not? If so, how? (Hint: think economically. How could the providers (not) solve the problems with common resources by regulating?)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

What are the reasons for increasing and decreasing factors of supply in e-commerce?
the use of social media as a tool for communication is on a rise in society today. As it relates to education, discuss two possible benefits of using social media as well as two challenges students are likely to face.
do fast i will 5 upvotes.
How does the internet affect the ability of firms to price - discriminate across consumers?
How does United Airlines Company implement Social media strategy and zones?
Discuss the short-run and long-run welfare effects of high-speed internet.
How might blockchain help address the problem ofspoilage and waste in the food industry?
How will the aggressive e-commerce plan implemented by Walmart affect operations at it's retail locations?
ECONOMICS Please Show Your Work With an Explanation This problem set explores what happens to pricing when we add network effects, which are a specific form of positive externality. You’ve invented a 3D fax machine. This cool technology is almost like a Star Trek teleporter. You can scan an object at one machine, which creates an exact copy at another 3D fax machine. It is so valuable that as more people use it, it becomes more valuable, and the price any given user is willing to pay increases in turn. Consider a scenario in which there are 12 possible users, who each value the fax machine at i*n, where i is the index of that user (from 1 to 12), and n is the number of other purchasing users. So, if no one buys the 3D fax machine, everyone values it at 0. However, as soon as one person buys the device, then the 12 possible users begin to value the product at 1, 2, … 12, respectively. If 2 people purchase, the 12 possible users’ valuations increase to 2, 4, … 24, and so on. Because…
Only typed answer
What factors might explain why various retailers can still charge different prices for the same product over the internet, despite the claim that it resembles a perfect market?
17. Which of the following best describes the idea of 'network effects'? (a) Network effects are a form of increasing returns to scale. (b) Network effects occur whenever high fixed costs lead to falling average costs. (c) Network effects are the way that large monopolies can control market price. (d) Network effects describe how capacity is limited by the size of the network.