Which of the Following Products or Services Is Not Subject

question 55

Multiple Choice

Which of the following products or services is not subject to network effects?

• A) Banking services
• B) Snack chip manufacturing
• C) Video game consoles
• D) Social networks
• E) Cell phone services

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Definitions:

Marginal Revenue of Advertising

The additional income generated from an increase in advertising expenditure.

Advertising Expenditure

The amount of money spent on promoting products or services through various media and marketing channels.

Marginal Cost of Production

The cost of producing an additional unit of a good, taking into account both variable and fixed costs.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than 1 indicating a high responsiveness.