Network Externalities Are Fueled by Three Sources

question 81

Multiple Choice

Network externalities are fueled by three sources:

• A)Minimizing switching costs, the existence of a natural network in an industry, and the availability of complementary products or services
• B)The existence of a natural network, the extent to which the government allows firms in an industry to externalize their costs, and the level of innovation in this industry
• C)The availability of complementary products or services, the importance of barriers to entry, and the level of innovation in an industry
• D)The level of innovation in an industry, the nature of the fundamental knowledge involved in this industry, and the availability of complementary products or services

---

Definitions:

Venn Diagram

A diagram that uses circles to represent sets and their relationships to each other, illustrating intersections, unions, and complements among the sets.

Categorical Syllogism

A form of reasoning in which a conclusion is derived from two premises, each of which shares a common or middle term not present in the conclusion.

Venn Diagram

A diagram that uses circles to represent the relationships and intersections among various sets or groups.

Proposition

A statement or assertion that expresses a judgment or opinion which is either true or false.