Network Externalities

question 82

Multiple Choice

Network externalities

• A)can only exist when there are economies of scale.
• B)prevent the dominance of a market by one firm.
• C)exist when the usefulness of a product increases with the number of consumers who use it.
• D)are created when celebrity endorsements of products lead to a surge in the demand for those products.

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Definitions:

Ratio

An expression that compares two quantities in a specified order.

Fuel Mix

The combination of various fuel sources used to generate energy or power.

Two-Cycle Engine

An internal combustion engine that completes a power cycle with two strokes of the piston during only one crankshaft revolution.

Ratio

A mathematical expression that represents the relationship between two numbers, showing how many times one value contains or is contained within the other.