What Are Network Effects

question 33

Multiple Choice

What are network effects?

• A) the positive cost effects that accrue for firms with larger output because they can spread fixed costs over more units
• B) the positive effect that one user of a product or service has on the value of that product or service for other users
• C) the positive effect that the high price of the entry ticket has on incumbent industries
• D) the positive cost effects that standardized commodities have on incumbent industries

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Definitions:

Golgi Apparatus

A cell organelle involved in modifying, sorting, and packaging proteins and lipids for secretion or use within the cell.

Vacuole

Membrane-bound sac, larger than a vesicle; usually functions in storage and can contain a variety of substances. In plants, the central vacuole fills much of the interior of the cell.

Plant Cells

The basic structural and functional units of plants, distinguished by their cell wall, chloroplasts, and central vacuole.

Pigments

Substances that give color to living things, found in the skin, hair, eyes, plants, and many other parts of living organisms.