A Two-Way Network That Links Users and in Which the Per-Unit

question 75

Multiple Choice

A two-way network that links users and in which the per-unit value of the service increases as the size of the network increases is a:

• A) positive externality known as an indirect network externality.
• B) negative externality known as an indirect network externality.
• C) positive externality known as a direct network externality.
• D) negative externality known as a direct network externality.

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Dividends

Funds disbursed by a company to its stockholders, typically as a share of earnings.

Market Price

The present cost at which a service or asset is available for purchase or sale in the marketplace.

Average Collection Period

The typical duration a business must wait to collect payments from its customers for goods or services sold on a credit basis.