Identify a True Statement About Network Effects

question 38

Multiple Choice

Identify a true statement about network effects.

• A)It makes it easier for new entrants to steal business from incumbent firms.
• B)It decreases the switching costs for customers, making it easier for them to choose between different brands.
• C)It is the growth in demand for a firm's product that results from a growth in the number of existing customers.
• D)It is the cumulative effect produced when one firm enters an industry and makes a profit which triggers other firms to enter the same industry.

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Definitions:

Outsourced

The practice of delegating certain business functions or services to external providers rather than handling them internally.

HR Strategy

The design and implementation of a set of proactive human resources policies and practices that effectively supports the overall strategy of an organization.

HR Strategy

A comprehensive plan outlining how the human resources of an organization will be managed and developed to align with its overall objectives.

Negative Impact

Adverse effects or harm resulting from a particular action or event.