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For “standard” goods, the consumption of a good today has no effect on future consumption. But,...

For “standard” goods, the consumption of a good today has no effect on future consumption. But, the authors suggest that this is not true of all goods.

1. Briefly explain the distinction between a “lagged-demand” and a “network” good, giving examples of each. (4)

2. If the widgets are a “network” good, how would it affect your firm’s pricing strategy. (4)

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