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Occupational Health and Safety, Canadian Edition

15th Edition
by David L. Goetsch, University of West Florida and Oskaloosa-Walton Eugene Ozon, Algonquin College
1035 Solutions 49 Chapters 1479 Studied ISBN: 0133450244 Computer Science 5 (1)

Chapters 12: DQ 10

10. LAST WORD How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.


Step-By-Step Solution

10. LAST WORD How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.

Answer: The purpose of social-networking sites it to interact with other people. The fact that Facebook is the most popular, is one of the things that helps keep it the most popular. Why would users choose to join a site with fewer other users, when they can be a part of the social-networking site with the most activity. This also means most companies will choose to advertise on Facebook instead of its rivals.

Amazon benefits greatly from its economies of scale. Due to its large number of sales, the cost per sale for Amazon is fairly low. An online retailer that does less business would have higher costs per sale; and therefore, have to charge higher prices to consumers. Most consumers would continue to choose Amazon due to the lower prices. Economies of scale make it very hard for a smaller retailer to compete with Amazon.


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Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.