________ States That the Value or Power of a Network

question 72

Multiple Choice

________ states that the value or power of a network grows exponentially as a function of the number of network members.

• A)Metcalfe's Law
• B)Moore's Law
• C)Law of scalability
• D)Law of outsourcing
• E)Law of networks

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Economic Rent

It is the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In other words, it's the extra income earned from a resource without investing in additional effort or cost.

Net Productivity

The actual output after subtracting the inputs used in the production process, indicating the efficiency of production.

Capitalization

The total market value of a company's outstanding shares, representing the investment community's perception of its worth.