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:

Tissue Respiration

The process by which oxygen is transported to cells and carbon dioxide is transported away, vital for cellular metabolism.

Main Bronchus

The primary division of the trachea that leads into each lung, facilitating air flow.

Hilum

A depression or groove in an organ where blood vessels, nerves, and other structures enter or exit.

Symmetric

Symmetric means being made up of exactly similar parts facing each other or around an axis; having symmetry.