Network Externalities Are

question 8

Multiple Choice

Network externalities are:

• A)The set of effects related to the network organizational structure, where many firms are connected through loose but efficient linkages
• B)The idea that the value of a product for a customer depends on the number of other users of the same product
• C)The costs incurred outside a firm when these costs are a direct consequence of that firm's activity
• D)The set of events, facts, and trends taking place in a firm's environment and that may impact its strategy

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Definitions:

Relative Frequency Distribution

A representation of the number of times each value occurs relative to the total number of observations.

Cumulative Frequency

The sum of frequencies accumulated up to a certain point in a distribution, showing the number or proportion of observations below a particular value.

Cumulative Relative Frequency

The accumulation of the previous relative frequencies up to a certain class or point, representing the proportion of observations.

Percentage

A proportion or share represented as a fraction of 100, used to express how large or small one quantity is relative to another quantity.