Which of the Following Statements About Network Economics Is Not

question 91

Multiple Choice

Which of the following statements about network economics is not true?

• A) eBay is an example of a business model that is based on the principle of network economics.
• B) The law of diminishing returns does not always apply to every situation.
• C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases.
• D) Information technology can be strategically useful from a network economics perspective.
• E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.

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Definitions:

Actuarial Information

Data and analysis provided by actuaries, involved in assessing risks and uncertainties, particularly in the insurance and finance industries.

Pension Fund

A pool of funds accumulated from contributions to provide retirement benefits to employees.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, expressed as a yearly rate.

Postemployment Benefits

These are benefits, such as pensions or health insurance, which employees are entitled to receive after their employment has ended.