Which of the Following Is Used to Explain Why a Consumer's

question 1

Multiple Choice

Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?

• A)network externalities
• B)market failure
• C)diminishing marginal utility
• D)the income effect of a price change

---

Definitions:

Prime Rate

The interest rate at which banks lend to their most creditworthy customers, often used as a benchmark for other loans.

Imputed Interest

Interest that the Internal Revenue Service assumes was paid for tax purposes, even if no interest payment was actually made.

Securitization Entity

A structured finance process that involves pooling various financial assets to create new securities, which are then sold to investors.

Legally Distinct

Refers to entities or organizations that are recognized as separate legal entities under the law, each with its own legal rights and obligations.