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Introduction to Microeconomics

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Question 3

A regional authority decides to provide free, unrestricted access to its state-funded high-performance computing (HPC) servers to all local technology start-ups.

What is a direct consequence of this policy?

There will be no opportunity cost associated with operating and maintaining the server clusters.

The computing capacity will convert into a non-rival public good.

The start-ups' demand for computing time will become perfectly price inelastic.

Non-price rationing mechanisms will have to be introduced to distribute the server capacity.

Introduction to Microeconomics Questions

  1. A Level
  2. /Economics
  3. /Introduction to Microeconomics