The Characteristic of Informational Networks When a Product Becomes More

question 51

True/False

The characteristic of informational networks when a product becomes more valuable as the number of users increases is called a positive network effect,or network externality.

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Definitions:

Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of interest and tax.

Unused Capacity

The portion of a company's resources or assets that remains unutilized or underutilized, not contributing to production or output.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested, expressed as a percentage.

Residual Income

The income that an individual or business has after all personal debts and expenses, including the cost of capital, have been paid.