A Network Effect Exists Whenever

question 82

Multiple Choice

A network effect exists whenever

• A) a firm's willingness to produce a particular good or service is influenced by the costs of inputs it must utilize in order to manufacture the item.
• B) a consumerʹs willingness to purchase a particular good or service is influenced by how many others also buy or have bought the item.
• C) a firm's willingness to purchase a particular factor of production depends on the other types of inputs it utilizes to manufacture an item.
• D) a consumer's willingness to purchase a particular good or service is influenced by the prices of other complementary or substitute items.

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Definitions:

Currency

A system of money in general use in a particular country, representing the medium of exchange for goods and services.

Check Register

A place for recording important information about each transaction.

Cash Balance

The amount of cash on hand or in a bank account that is immediately available for use.

Deposit

A deposit is a sum of money placed in an account or given to a party as security for the fulfillment of a contract, often refundable after certain conditions are met.