Which of the Following Statements About Network Economics Is Not

question 43

Multiple Choice

Which of the following statements about network economics is not true?

• A)Uber is an example of a business model that is based on the principle of network economics.
• B)The law of diminishing returns does not always apply to every situation.
• C)From a network economics perspective,the value of a community of people grows as the number of participants in the community increases.
• D)Information technology can be strategically useful from a network economics perspective.
• E)In network economics,the marginal cost of adding new members to the network is higher than the marginal gain.

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Definitions:

Poor Economy

A condition where there is a decline in financial and economic activities, leading to higher unemployment rates and lower consumer spending.

Expected Returns

The probable gains or losses on an investment over a specific period based on historical performance or analyst forecasts.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Portfolio

A portfolio containing various financial instruments such as stocks, bonds, commodities, plus cash and cash equivalents, in addition to closed-end funds and ETFs.