In a Class of 10 Students,two of the Students Owned

question 59

Multiple Choice

In a class of 10 students,two of the students owned cell phones.Hence,only these two students could send text messages to each other in the class.A few days later,two more students got their own cell phones.This increased the habit of texting via phones.In a few months' time,all the students in the class got cell phones and thus,cell phones became more valuable in their class.Which of the following phenomena had occurred in the class?

• A)Network internality
• B)Network externality
• C)Supply side economies of scale
• D)Negative network effect

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Definitions:

Normal Balance

The usual balance side (debit or credit) of an account that is expected based on the accounting equation and principles.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services delivered but not yet paid for.

Unearned Revenues

Money received by a company for services or goods yet to be delivered or provided, considered a liability until the transaction is completed.

Dividends Account

An account used to record the payments made by a company to its shareholders out of its profits.