Solved

How Do Network Effects Benefit Established Businesses

Question 46

Multiple Choice

How do network effects benefit established businesses?


A) It allows consumers to find a variety of goods and services in one place.
B) Transportation costs are decreased, and the concentration of many people and firms in a particular area leads to greater innovation by existing firms and new ones.
C) It doesn't benefit established businesses.
D) It allows the established business to learn about its competitors, thus allowing it to lower prices and compete more effectively.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions