How Do Network Effects Benefit Established Businesses

question 65

Multiple Choice

How do network effects benefit established businesses?

• A)Network effects allow consumers to find a variety of goods and services in one place.
• B)Network effects both decrease transportation costs and encourage the concentration of many people and firms in a particular area, thereby leading to greater innovation by both existing firms and new ones.
• C)Network effects don't benefit established businesses.
• D)Network effects allow the established business to learn about its competitors, thus allowing it to lower prices and compete more effectively.

Distinguish between money and wealth, and comprehend that not all assets function equally as money.

Recognize the role of commodity money in history and its characteristics compared to fiat money.

Understand the basic operations and effects of monetary policy and the role of the Federal Reserve.

Identify and describe the stages of the general adaptation syndrome.

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Definitions:

Intrapersonal Skills

Intrapersonal skills refer to the ability of an individual to understand and manage their own emotions, motivations, and behaviors effectively.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Problem Solving

The process of identifying a problem, developing possible solutions, and implementing an action to address the problem.

Learning

The process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.