Explanation:
Network externalities exist when the utility that a user derives from a good or service depends positively on the number of other users of the same or compatible goods.
Explanation:
Cost-push inflation arises when the cost of production increases due to higher wages, raw material prices or other input costs, leading to higher prices.
Explanation:
Efficiency-wage theories argue that higher wages can increase worker effort, reduce shirking, lower turnover or improve the quality of applicants, so that firms may optimally set wages above the market-clearing level.
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