If Ep Is 2500 and Y Is 3000,then Companies Will

question 103

Multiple Choice

If Ep is 2500 and Y is 3000,then companies will

• A)reduce orders and production by 500.
• B)increase orders and production by 500.
• C)wait for final sales to increase.
• D)wait for final sales to decrease.

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Definitions:

Network Externalities

Economic effects that occur when the value or utility of a product or service to a user depends on how many other users there are.

Buy a Unit

The action of purchasing a single item or measure of a product for a specified price.

Perceived Market Share

An estimate of the fraction of total market sales captured by a firm, based on the perception of consumers or the firm itself.

Actual Market Share

The real or actual percentage of a market controlled by a company or product, measured by sales volume or revenue.