Network effects are:
A. reductions in per-unit production cost as firms learn by doing.
B. the change in real GDP resulting from a change in investment or government spending.
C. increases in demand resulting from products being mentioned positively in a television program.
D. increases in the value of a product to each user, including existing users, as the total number of users rises.
Answer: D
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When a country or a region of a country specializes in producing the product that has the lower opportunity cost compared to another country or region, it is practicing
A) absolute advantage. B) cost disadvantage. C) regional advantage. D) comparative advantage.
The difference between the nominal rate of interest and the real rate of interest is
A) handling charges. B) government regulatory charges. C) administrative overhead charges. D) the anticipated rate of inflation.