A Network Externality Occurs When

question 193

Multiple Choice

A network externality occurs when

• A)there is production cost savings from being networked with suppliers.
• B)there is production cost savings from being networked with buyers.
• C)the usefulness of a good is affected by how many other people use the good.
• D)the usefulness of a good is affected by celebrities who use the good.

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Definitions:

Smithsonian Institution

A group of museums and research centers administered by the United States government, known for its extensive collections and research in various fields.

Traditional Nonprofit

An organization that operates primarily on donations, grants, and volunteer support to serve a social, charitable, cultural, or educational purpose without pursuing profits.

Johnson Amendment

A U.S. law that prohibits all 501(c)(3) non-profit organizations from endorsing or opposing political candidates.

Repealing

The action of revoking or withdrawing a law, tax, duty, or regulation.