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44. In the chart above, which is the same as Figure 3 on p. 35 of Varian, three points are identied, each one corresponding to

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44. In the chart above, which is the same as Figure 3 on p. 35 of Varian, three points are identied, each one corresponding to a possible equilibrium in a market Twith network externalities. According to Varian, critical mass is represented by . A. the point A on the far left, with no adopters B. the point B in the middle, with a positive but limited number of adopters C. the point C on the far right, with a high number of adopters 45. Varian says one factor that can cause sales of a network good to exceed critical mass and zoom upward is a sharp He suggests that the behavior of prices and sales of is consistent with this story. (pp. 34-36) A. change in consumer tastes; Microsoft software B. change in consumer tastes; fax machines C. decrease in the price of the good; Microsoft software D. decrease in the price of the good; fax machines

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