What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly. Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities. Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

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Answer 1

Question

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

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Problem 1-Experiments/Randomized Control TrialSuppose you are interested in studying the effect of being a part of the labor union on anindividual’s hourly wage.You collect data on 1000 people and run the following regression. where is a dummy variable which is equal t to 1 for people who are a part of labor union and0 for others. a. Suppose you estimate . Interpret b. Do you think is biased or unbiased? Explain. Now suppose you conduct a randomized control trial to answer the same question. Yourandomly assign some individuals to be a part of the labor union and others to not be a partof the labor union. The first step you take is to ensure that the randomization was donecorrectly. Then you estimate the following equation: =1 if the student is assigned to be a part of Labor Union=0 if the student is assigned to not be a part of Labor Union c. Why is it important to ensure that the randomization is done correctly? d. Name any two variables that you can use to test if Treatment and…

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If food is produced in the U.S., sold in the U.S. and consumed in the U.S., a reduction in its price will have which of the following effects ______? Two of the answers are correct. The consumer price index will decrease. None of the answers are correct. The GDP deflator will decrease.

Answer 2

Question

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

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Answer 3

Question

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

Answer 6

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

Answer 7

Chapter 16, Problem 1BCQ

To determine

What type of externality is present in social networking platforms. Or SNPs? Explain why Friendster and Facebook, two SNPs that were direct competitors, were unlikely to both service. Explain why the loser, Friendster, declined so quickly.

Introduction: Externalities are used to explain costs and benefits that occur externally. External costs are referred to as negative externalities while external benefits are called positive externalities.

Network externalities are said to happen when the value of a good or service increases as more and more people engage in the consumption or production of the commodity.

Answer 8

Expert Solution & Answer

Explanation of Solution

Social media is a platform to virtually interact with people using a desktop or any mobile device that can connect to the internet.

Information about a particularly popular topic finds its way on social media platforms very fast. This exchange of general and technical information that has great potential to improve or initiate productivity is called a network externality, where technology innovated in an economy leads to the growth and development of other business and economic activities.

The decline of the websites with low popularity is accredited to preference and efficiency of the dominant website when compared to these sites. Although the newer players are efficient in fulfilling the needs of the consumer, as seen in the case of network externalities, the problem-solving techniques of one producer is adopted by rest of the players.

The process of decline is seen to be systematic. The fall starts with reduced users or consumers of the service, as the number of people using the product starts to decrease so does the number of connected users on a social media website, meaning lesser and lesser people to interact with. Finally, the developers cease to develop the technology, utility and enhance the user experience.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 16 - Prob. 1BCQ Ch. 16 - Prob. 2BCQ Ch. 16 - Prob. 3BCQ Ch. 16 - Prob. 1P Ch. 16 - Prob. 2P Ch. 16 - Prob. 3P Ch. 16 - Prob. 4P Ch. 16 - Prob. 5P Ch. 16 - Prob. 6P Ch. 16 - Prob. 7P

Explanation of Solution

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Chapter 16 Solutions