### Explain equilibrium in which someone is using the good

##### Reference no: EM1360683

let's assume that consumers are named using real numbers between 0 and 1. Individual x has the reservation price r(x) = 1 - n before
we consider the network e?ect. The network e?ect is given by f (z ) = z for m ≤ 1/4 and by f (z ) = (1/2) - z for z ≥ 1/4. So the network bene?t to being a user is maximized when the fraction of the population using the product is z = 1/4, once the fraction is beyond 1/4 the bene?t declines, and it becomes negative if more than 1/2 of the population is using it. Suppose that the price of this good is p where 0 < p < 1/16.

(a) How many equilibria are there? Why? [You do not need to solve for the number(s) of users; a graph and explanation is ?ne.]

(b) Which equilibria are stable? Why?

(c) Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? Explain.

#### Questions Cloud

 Elucidate how much profit does the monopolist earn : The graph also shows the marginal revenue curve faced by this firm. Elucidate how much profit does the monopolist earn. What is the net workdone on the weights : what is the net workdone on the weights.A child slides down a hill on a toboggan with an acceleration of 1.8 m/s2. If she starts at rest, how far has she traveled after following lengths of time. Talent management system-attracting and retaining the best : What is the definition of talent management? Explain why companies are placing intense focus on attracting and retaining the best talent at all levels of an organization. Describe and explain each of the four p''s in the marketing : Describe and explain each of the four P's in the marketing mix and Please provide examples of how a company will focus on the 4P's to increase customer satisfaction of their product Explain equilibrium in which someone is using the good : Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? . Show personnel dexterity tests : A particular employer requires job candidates to score at least 80 on the dexterity test. Approximately what percentage of the test scores during the past year exceeded 80? Explain instead of placing the diamonds : Explain Instead of placing the diamonds in the hotel safe and Torczyner carried them to his room What factors are involved in selecting architecture : Under what architecture would you classify technologies such as virtualization, cloud computing, and Web-based applications? Last, what factors are involved in selecting the architecture that is right for your organization? Skills and attributes of a manager-how to implement : Prepare a plan for your approach to management that includes the skills and attributes a manager must possess. In this plan, explain how you would implement each function of management in your role as a manager.

### Write a Review

#### Compute the unweighted-average nominal tariff rate

Compute the unweighted-average nominal tariff rate for Tarheelia nominal tariff rate for Tarheelia.

#### Coffee production contributed to the growth

In what ways and to what extent did coffee production contributed to the growth and development of the Brazilian economy before 1930.

#### Illustrate what is the socially efficient number of portrait

What will be his economic profit. How much consumer surplus is generated each day at this price. Illustrate what is the socially efficient number of portraits.

#### Labor-saving innovations

New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.

#### Conduct a test of hypothesis to conclude

Illustrate what import also export means also give one example of every in fashion area. Conduct a test of hypothesis to conclude whether the mean attendance was more.

#### Why the percentage change in quantity demand

In addition categorize the level of elasticity of a product or service of your choice from real life depends on what you know happens to the percentage change in quantity demand when the price changes.

#### Us cigarette organization has negotiated with congress

The U.S. cigarette organization has negotiated with Congress also government agencies to settle liability claims against it.

#### According to the article about the gasoline shortage

According to the article about the gasoline shortage, which way is the demand curve shifting

#### Point of tangency that characterizes

Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.

#### What the equilibrium interest rates for the federal funds

Elucidate what the equilibrium interest rates for the federal funds rate the government bond rate also the private bond rate are also Illustrate what the equilibrium level of income is.

#### Aunt works for a defense manufacturing company

You find out which your aunt works for a defense manufacturing company which has several defense contracts with the government.

#### Interests of stockholders and managers

Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.