Online Games Are Big Business: Which of the Following Statements

question 32

Multiple Choice

Online Games Are Big Business: Which of the following statements concerning the online games played on social network sites is false?

• A)The social network site receives payments from the game company.
• B)All users of the social network site are fine with having games available and part of feeds.
• C)Playing the games is free.
• D)Game companies use social network sites to advertise.
• E)Facebook created its own currency.

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Definitions:

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on price, quality, and branding.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, essentially covering opportunity costs.

Nonprice Competition

Strategies used by companies to attract customers through methods other than lowering prices, such as quality improvement, service, or branding.

Product Differentiation

The practice of individualizing a product or service in the marketplace to make it more enticing to a targeted audience.