Chapter 35 — Exercises

A1. Apply network effects to explain why Google dominates search. A2. Uber is a two-sided market. Identify the two sides. Why does Uber subsidize riders? A3. "Digital goods have zero marginal cost." Why does this break the P = MC pricing rule? A4. Evaluate the three AI-labor scenarios. Which has the most evidence? What would change your mind? A5. Should gig workers be classified as employees or contractors? Apply the frameworks from both sides. A6. The Millbrook Innovation Hub opened with 15 startups. Apply network effects: what's the minimum viable size? A7. Look up the market share of Google Search, Amazon e-commerce, and Facebook social media. Are these monopolies? A8. "AI will destroy all jobs." Apply the historical evidence from Chapter 21. Why is this probably too strong?

Selected answers in appendices/answers-to-selected.md.