1. Using the SEEI format for critical thinking, describe how Amazon takes advantage of Metcalfe's Law (network effects)? Provide two specific examples in your SEEI.

State:

Explain:

Example:

Illustrate:

2. The natural state (or ending state, i.e. not near the beginning) of a market where network effects are present is for there to be intense competition between several rivals.

a. false

b. true

3. What occurs when the value of a product or service is lowered as more customers use it?

a. Congestion effects

b. Network internalities

c. Backward incompatibility

d. Market inflexibility

e. Convergence