1.2. Every so often, rumors float around Facebook claiming that the social networking site is going to...

Question:

1.2. Every so often, rumors float around Facebook claiming that the social networking site is going to begin charging its users a small monthly fee.

So far, those rumors have always turned out to be false.

a. Do you use Facebook? If so, how much would you be willing to pay per month for access to Facebook? (If you don't use Facebook-as unlikely as that is nowadays how much do you imagine the typical user would be willing to pay to use it?)

Competing for Monopoly: The Economics of Network Goods • CHAPTER 1 6 • 315

b. Besides the price itself, what else would determine whether it was worth it to you to pay for Facebook? Is your response independent of others' responses?

c. Do you think Facebook ever will charge users a fee? What are some reasons Facebook might do this? What are some arguments against this idea?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

Question Posted: