Which of the Following Statements Illustrates the Network Effects That

question 40

Multiple Choice

Which of the following statements illustrates the network effects that portals are subject to?

• A)Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market.
• B)The value of the portal to advertisers and consumers increases geometrically as reach increases.
• C)The greater the amount of content provided by a portal, the greater its value to the community.
• D)The greater number of portals available, the greater the potential audience for each.

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Definitions:

Advancing Technology

The ongoing development and application of scientific knowledge to industrial or commercial objectives, leading to new or improved technologies and innovation.

Venture Capitalists

Persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.