What happens when network externalities are present? a. the usefulness of a product increases with the number of consumers who use it. b. the usefulness of a product decreases as the number of firms selling the product increases. c. the usefulness of networks diminishes with the number of consumers who enter them. d. the usefulness of telecommunications equipment rises?

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone