A Good Is Subject to a Network Externality When

question 165

Multiple Choice

A good is subject to a network externality when:

• A)the value of the good to an individual is less when a large number of other people also use the good.
• B)the value of the good is determined only by marginal private benefits.
• C)an increase in the number of other people using the good increases its value to an individual.
• D)a good yields negative externalities.

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Definitions:

Product Delivery

The complete process of bringing a product from conception to market availability, including production, testing, and distribution.

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on form, function, usability, and aesthetics.

HR Policies

Specific guidelines or rules set by an organization's human resources department to govern employee relations and workplace practices.

Financial Health

A measure of the financial stability and viability of an entity, often assessed through metrics such as liquidity, solvency, and profitability.