A Network Externality Occurs When

question 193

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 other people use the good.
• D)the usefulness of a good is affected by celebrities who use the good.

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Definitions:

Corporate Demand

The total demand for products or services generated by businesses and corporations.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Freight Railroad

A type of railroad designed for the transportation of cargo, as opposed to passengers, across distances.

Revenue Management Opportunities

Strategies and practices aimed at maximizing income potential, often through dynamic pricing based on demand.