Which of the Following Statements Best Describes the Potential Impact

question 36

Multiple Choice

Which of the following statements best describes the potential impact of network effects with respect to portals?

• A) Specialized vertical market portals attract only a small percentage of the audience, while a few large megaportals garner most of the market.
• B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
• C) The greater the amount of content provided by a portal, the greater its value to the community.
• D) The greater number of portals available, the greater the potential audience for each.

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Definitions:

Factor Distribution

Refers to the way in which income is distributed among the factors of production, typically labor, capital, and land.

Human Capital

The combined abilities, expertise, or other non-physical assets belonging to people that can be leveraged to generate economic worth.

Proprietor's Income

The income earned by the owner of a sole proprietorship, which consists of the profits generated by the business.

Production Factor

An input used in the manufacturing of goods or services, typically categorized into land, labor, and capital.