When Network Effects Are Important, Then an Industry Can Experience

question 72

Multiple Choice

When network effects are important, then an industry can experience

• A) positive market feedback.
• B) prince-leadership.
• C) a zero-sum game.
• D) a vertical merger.

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Definitions:

Realized Gain

The profit earned from selling an asset for more than its purchase price, indicating a successful investment.

Trading Securities

Financial assets that are bought and held primarily for selling in the near term to generate income on short-term price differences.

Selling Price

the amount of money for which a good or service is sold to a customer, not necessarily reflecting the cost of production or provision.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically recognized as a portion of the investee’s net income or loss.