A Network Externality Occurs When

question 59

Multiple Choice

A network externality occurs when

• A) a firm has a patent.
• B) the value of a product to a consumer increase with the number of other consumers who use it.
• C) a firm has large economies of scale.
• D) the value of a product to a consumer requires another product.

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Definitions:

Satisfied Employees

Workers who feel content, valued, and fulfilled in their jobs, often resulting in higher productivity and lower turnover rates.

HR Department

The segment of an organization focused on recruitment, management, and direction of people who work in the organization, also dealing with employee benefits, training, and compliance.

Small Organizations

Businesses or institutions characterized by a smaller workforce, lower revenues, or limited operational scope.

Scientific Management

A management theory that analyzes work flows to improve economic efficiency, especially labor productivity.