How Do Network Effects Benefit Established Businesses

question 46

Multiple Choice

How do network effects benefit established businesses?

• A) It allows consumers to find a variety of goods and services in one place.
• B) Transportation costs are decreased, and the concentration of many people and firms in a particular area leads to greater innovation by existing firms and new ones.
• C) It doesn't benefit established businesses.
• D) It allows the established business to learn about its competitors, thus allowing it to lower prices and compete more effectively.

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Definitions:

System Requirements

The specific configuration of hardware and software that is necessary for a software application or hardware device to operate correctly.

RAM

Random Access Memory, a form of computer storage that can be accessed randomly, used for storing data temporarily while a computer is running.

System Requirements

Specifications that outline the minimum hardware and software environments necessary for a software application or system to operate.

Hard Drive

A storage device that is non-volatile, encoding data digitally on platters that spin quickly and have magnetic coatings.