Increases in the Value of a Product to Each User

question 224

Multiple Choice

Increases in the value of a product to each user, including existing users, as the total number of users rises are called

• A) information cascades.
• B) learning effects.
• C) network effects.
• D) scale economies.

Understand historical shifts in production methods and their impact on business size and structure.

Describe the interdependency between small and large businesses.

Recognize the significant representation of small businesses in the service sector.

Understand the rise in entrepreneurship education and the factors contributing to the increase in small business formation.

---

Definitions:

Groupthink

A psychological phenomenon occurring within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Fake Electric Shocks

A method used in psychological experiments where participants are led to believe they will receive or have received electrical shocks, when in fact no such shocks are actually administered.

Dissenting Opinion

An opinion written by a judge or justice that disagrees with the decision reached by the majority of his or her colleagues.

Milgram's Orders

Refers to the orders given in Stanley Milgram's obedience experiment, which studied participants' willingness to administer electric shocks to others under authority instructions.