A Network Externality Occurs When

question 268

Multiple Choice

A network externality occurs when

• A) there is production cost savings from being networked with suppliers.
• B) there is production cost savings from being networked with buyers.
• C) the usefulness of a good is affected by how many others use the good.
• D) the usefulness of a good is affected by celebrities who use the good.

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Definitions:

Foreign Subsidiaries

Companies that are partially or wholly owned by a parent company but operate in a country different from the parent company's location.

Legal Environment

The framework of laws, regulations, and practices that influence the conduct of businesses and individuals within a jurisdiction.

Workforce Planning

The systematic process for identifying and addressing the gaps between the workforce of today and the human capital needs of tomorrow.

Labour Market Data

It encompasses statistical information related to employment, unemployment, wages, and workforce characteristics in a specific region or industry.