Which of the Following Is Used to Explain Why a Consumer's

question 299

Multiple Choice

Which of the following is used to explain why a consumer's willingness to buy a cell phone increases as the number of other people who own and use cell phones increases?

• A)network externalities
• B)market failure
• C)diminishing marginal utility
• D)the income effect of a price change

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Definitions:

Donated Capital Assets

Assets received as donations by an organization that are used in operations and not resold.

Fair Market Value

The price that an asset would sell for in a transaction between willing participants under no compulsion to buy or sell.

Recorded Value

The value of an asset or liability as noted in the financial records or books of an organization.

Endowment Contribution

A donation made to an institution, with the stipulation that the principal amount must be maintained intact while the investment income can be used for organizational purposes.