Which of the Following Statements Is True

question 138

Multiple Choice

Which of the following statements is true?

• A) Network effects act as barriers to entry in a market.
• B) Economies of scale act as incentives for new firms to enter a market.
• C) If a firm is enjoying economies of scale, then its product must have network effects.
• D) If a firm's product has network effects, then the firm must be enjoying economies of scale.

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Definitions:

Tone

The attitude or emotional characteristics exhibited through word choice, writing style, or voice, affecting the overall feel conveyed by communication.

Instant Messaging

A form of real-time text-based communication between two or more people over the internet or a network, allowing for immediate receipt and response.

Text Messaging

The act of sending brief written messages via mobile devices or computer systems, a common form of digital communication.

Real Time

Pertaining to the processing of data or information at the moment it is received, allowing for immediate action or response.