Which Statement Best Describes the Relationship Between Network Effects and Innovation

question 24

Multiple Choice

Which statement best describes the relationship between network effects and innovation?

• A) Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard.
• B) Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.
• C) More often than not, network effects foster innovation
• D) More often than not, network effects limit innovation

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Definitions:

Legislature

The governmental body empowered to make, amend, or repeal laws within a state or country.

Synthesize

To combine various elements or aspects from different sources to form a coherent whole or create something new.

Summarize

The act of presenting a concise statement or overview of the main points of a text, document, or discourse.

Explain

To make something clear or easy to understand by describing or giving information about it.