EBaycom Dominates the Online Auction Business Because Sellers Want to Go

question 230

Multiple Choice

eBay.com dominates the online auction business because sellers want to go where the buyers are and buyers want to go where the sellers are. Bigger is thus better. Hence, eBay.com illustrates the concept of:

• A) public goods.
• B) nonrival goods.
• C) economies of scope.
• D) a network externality.

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Definitions:

Constrained Resource

A resource in limited supply that restricts a company's ability to meet production demands or goals.

Profitability Order

This term does not refer to a specific accounting or financial metric but generally could mean prioritizing products, services, or projects based on their profitability.

Current Profitability

The measure of a company's current profit levels, often assessed through metrics like net income or operating profit.

Variable Costs

Expenses that vary directly with the amount of output or sales.