Which of the Following Statements Illustrates the Network Effects That

question 25

Multiple Choice

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

• A)Specialized vertical market portals attract only a small percentage 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:

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they pay, representing the benefit obtained by consumers in the transaction.

Market Price

The current price at which an asset or service can be bought or sold; determined by supply and demand.

Sugar Quotas

Government-imposed limits on the quantity of sugar that can be imported or produced domestically, often used to protect domestic production and control prices.

Quota Limits

Refers to government-imposed restrictions on the quantity or monetary value of goods that can be imported or exported over a specific period.