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

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Definitions:

Suffix Effect

A phenomenon where the presence of an extraneous sound at the end of a list can impair recall of the final items, relevant in studies of memory and auditory processing.

Echoic Memory

A type of sensory memory that stores auditory information received from the environment for a short duration.

Short-Term Memory

The component of memory where small amounts of information can be stored for a short period of time.

Modality Specific

Pertaining to or affecting a particular mode of sensation or a specific sensory system.