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pickupchik [31]
3 years ago
15

A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company dec

ide to price its product? Offer the product for free early on, and increase the price later.
Business
1 answer:
stiv31 [10]3 years ago
5 0

Answer: a. Offer the product for free early on, and increase the price later

Explanation:

When a product is said to have a network effect, what it means is that the product gets more value as more people use it. For example Whtsapp which is only such an effective means of communication because more and more people are getting it. If people did not get it, it would not be such a good medium and would be valued less.  

If a company wants to price such a product, they should charge at lower rates first which would entice more people to use the product thereby giving the product more value. As the product value increases, the price can then increase to reflect this increased value.

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3 years ago
RL Inc., an American insurance company, attempted to sell life insurance in Spain. However, the company failed to understand tha
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The correct option is C

Explanation:

A cultural misunderstanding occurs when something like a word, gesture, social context, object has different meaning in two cultures. sometimes the misunderstandings get resolved, sometimes it leads nowhere and other times it can escalate to anything from love to war.

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3 years ago
A persons driving record will affect the automobile insurance premium. True or false
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True

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5 0
3 years ago
Which of the following can help a business monitor quantitative business factors?
Georgia [21]

This system can help a business monitor quantitative business factors

Inventory and transaction systems

Explanation:

The Inventory and transaction systems are usually there to report on the tangible benefits of the transaction that are being made and the commerce that is happening for the business over all.

These inventories are thus to be deigned and computed in the manner that would best align with the interest of the company and the firm that is needed for the quantitative business.

Quantitatively, one would need substantial data and this can provide it well.

3 0
3 years ago
A strictly dominant action produces: a higher payoff than any other action the player can use for every possible action of the o
Novosadov [1.4K]

Answer:

A strictly dominant action produces: a higher payoff than any other action the player can use for every possible action of the other players.

Explanation:

A strictly dominant action does not play fair. Here, there is no equality because strict dominance requires all payoffs to be strictly greater.

A strictly dominant strategy is that strategy that always provides greater utility to a the player, no matter what the other player's strategy is.

A rational player will avoid a strictly dominated counterpart because if his opponent uses strictly dominated action he will be come out worse off regardless of which moves other players make.

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