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1. Four railroads are each worth $100 when each is owned by separate individuals and each individual chooses a different railroad gauge; however they are worth $800 when owned by the same individual and have a common gauge. This is due to
Uncertainty
Network Effects
Path Dependence
Intellectual Property Rights
Switching Costs
2. Which of the following in NOT an Intellectual Property protection statute enacted by the government?
Protection of Trade Secrets
DMCA
End User License
Copyright Act
Patent Act
3. Digitization technologies increase the “degree of publicness” of information goods because they reduce
None of the above
Fixed costs
Variable costs
Copying
Privacy
4. Markets for information goods like Operating Systems are more likely to be near monopolies because of some unique characteristics of information goods. Which of the following is NOT one of the drivers of a monopolistic structure for information goods?
Demand-side economies of scale.
Durability.
High Switching Costs for Consumers.
High fixed costs.
Low variable Costs.
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