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(Figure: Externalities and Network Effects) Based on the graph, if a consumer leaves the social network depicted, DP shifts right and DS shifts right.
Debt Ratio
A ratio indicating the ratio of a company's total liabilities to its overall assets.
Financial Leverage
The use of borrowed funds to enhance the potential return of an investment.
Total Liabilities
The sum of all financial obligations or debts that a company owes to outside parties at a given point in time.
Total Assets
The sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, represented on the balance sheet.
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