Fill in the Blank QuestionFill in the blank question.Network effects may drive a market toward , because consumers tend to choose standard products that everyone else is using.

Question 8What are DIRECT network effects? 1 pointThis is also called same-side network effect and arise where the presence of an additional customer on one side of the market affects the value to users on the same side of the market. An example is online gamers who benefit from participation of other gamers.Network effect that arises where an additional participation on one-side of the market affects the value to users on the other side of the market. For instance, more merchants accepting Amex increases the value for Amex card holders.

Multiple Choice QuestionHow do network effects create barriers to entry in the social media industry?Multiple choice question.They discourage people from using lesser-known networks.They make decision-making difficult for consumers.They increase market competition.They result in an overcrowded marketplace.

Multiple Choice QuestionThe presence of network effects can predispose an industry toward which of the following?Multiple choice question.Price-settingMonopolyDiversificationCompetition

Which of the following business models does not resemble the Cross-side network effects?1 pointGrowth of the number of programmers and Data Scientists leads to an increase in the number of open source companies that want to provide these people with additional resourcesGrowth of gamers on Steam platform leads to an increase in the number of gaming publishing companies who want to upload their games on Steam.Growth of Etsy buyers motivates more DYI maker sellers to join the platform since the increase in buyers means bigger market for sellersGrowth in the number of driverless cars motivates even more people to buy a driverless car too2.Question 2

Which of the following is not a possible source of natural monopoly?Multiple Choicelarge-scale network effectssimultaneous consumptiongreater use of specialized inputsrent-seeking behaviour