Which of the Following Statements About Network Economics Is Not

Multiple Choice

Which of the following statements about network economics is not true?

A) eBay is an example of a business model that is based on the principle of network economics.
B) The law of diminishing returns does not always apply to every situation.
C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases.
D) Information technology can be strategically useful from a network economics perspective.
E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.