Introduced World to the Concept of "Achievements"-Digital Rewards Unlocked by Completing

question 11

Multiple Choice

Introduced world to the concept of "achievements"-digital rewards unlocked by completing various milestones in a game:

• A) PlayStation 3
• B) Xbox 360
• C) Wii
• D) None of the above

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Definitions:

Natural Monopoly

A situation in the market where due to high initial costs and substantial economies of scale, a single firm can supply a product or service at a lower cost than any potential competitor, leading to a market dominated by one supplier.

Network Effects

Increases in the value of a product to each user, including existing users, as the total number of users rises.

Rent-seeking Behavior

Activities undertaken by individuals or firms to increase their own wealth without creating new wealth, often through manipulating the social or political environment in which economic activities occur.

X-inefficiency

X-inefficiency occurs when a firm lacks the incentive to control costs, leading to inefficiency and higher expenditure than is necessary for the level of output produced.