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:

Chiefdom

A politically organized society in which several neighboring communities inhabiting a territory are united under a single ruler, who is at the head of a ranked hierarchy of people.

Paramount Chief

A supreme leader among a group of chiefs in certain traditional societies, often with political and spiritual authority over a larger area.

Closeness

Generally refers to the quality or state of being close or near in space, time, or relationship.

Class Ranking

A system of organizing or categorizing people based on social or economic status, often influencing access to resources and opportunities.