A(n) …………….. is an activity for which a firm is a world-class leader.

A. Internet shopping produces cost transparency

B. Internet technologies are universal, and therefore usable by all companies

C. The Internet enables the production or sales of substitute products or services

D. E-commerce is affected by the law of diminishing returns

E. The Internet increases switching costs

A. Secondary

B. Auxiliary

C. Primary

D. Support

E. Service

A. False

B. True

A. Switching costs

B. Differentiation costs

C. Variation costs

D. Retention costs

E. Preservation costs

A. False

B. True

A. Uber is an example of a business model that is based on the principle of network economics

B. Information technology can be strategically useful from a network economics perspective

C. The law of diminishing returns does not always apply to every situation

D. From a network economics perspective, the value of a community of people grows as the number of participants in the community increases

E. In network economics, the marginal cost of adding new members to the network is higher than the marginal gain