The Benefit Added by the 50,000th User in a New

question 156

Multiple Choice

The benefit added by the 50,000th user in a new network is _____ than the benefit added by 50,000,000th user, due to _____ returns to the network externality.

• A) larger; increasing
• B) larger; diminishing
• C) smaller; increasing
• D) smaller; diminishing

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Availability Heuristic

Availability Heuristic is a mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Functional Thinking

A cognitive approach focusing on the practical and utilitarian aspects of problem-solving and decision-making.