Which of the following statements about network economics is not true?
A)Uber 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.

Question

Quizplus · Accepted Answer

In network economics, the marginal cost of adding new members to the network is lower than the marginal gain. This is known as the network effect, where the value of a network increases as more people use it. Choice E states the opposite, making it the incorrect statement.

Which of the Following Statements About Network Economics Is Not