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:

Wilcoxon Rank Sum Test

A nonparametric test used to determine whether two independent samples come from the same distribution.

Significance

In statistics, refers to how likely it is that a relationship observed in data would occur simply by chance.

Basal Metabolism

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm; the minimum amount of energy consumed in a resting state.

Nonparametric Methods

Statistical techniques that do not assume a specific distribution for the data, often used when data do not meet the assumptions of parametric tests.