Which Statement Best Describes the Relationship Between Network Effects and Innovation

question 24

Multiple Choice

Which statement best describes the relationship between network effects and innovation?

• A) Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard.
• B) Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.
• C) More often than not, network effects foster innovation
• D) More often than not, network effects limit innovation

---

Definitions:

Action Potentials

Rapid and temporary electrical charges that travel along the membrane of a neuron, facilitating nerve impulse conduction.

Stimulation

The encouragement of something to increase activity, interest, or enthusiasm, or the process of applying a stimulus.

Intensity

The degree of strength, force, or brightness of a stimulus or action.

Synaptic Vesicles

Membrane-bound structures within neurons that contain neurotransmitters, which are released into the synaptic cleft to transmit nerve impulses to other neurons.